Market Momentum Builds as GTA Home Sales Rise & Buyers Regain Confidence
More homebuyers are seeking to take advantage of more affordable monthly mortgage payments and have responded to the substantial choice in the marketplace by negotiating average selling prices downward. The anticipated interest rate cut was welcome news for homebuyers, who are now more confident that another rate cut will come by year-end. With lower borrowing costs
“more households can afford monthly mortgage payments on homes that meet their needs.”
While home sales have improved compared to last year, they still remain below typical levels relative to the number of GTA households. Sales are trending to end the year approximately 11% lower than 2025. Given ongoing employment challenges and household uncertainty, it is highly likely that another rate cut will be needed — one that could spur confidence and encourage buyers currently on the sidelines to enter the market.
A further 25-basis-point cut by the Bank of Canada this year could further stimulate home sales and related economic activity. It has been widely reported that each real estate transaction injects more than $80,000 into the economy through housing-related spin-off spending, helping offset the impact of ongoing trade challenges.
Rental Market Remains Strong
The condo rental market continues to stabilize, with demand outpacing supply. Lease transactions rose faster than listings, which were up just 4%. Active listings dropped 7%, and average rents hit $2,668 — still down from previous years, but five-year growth remains positive at 3.6%.
Condo Resale Market Under Pressure
Resale condos are firmly in buyer’s market territory, with sales-to-new listings at 33% and months of supply at 6.7. Prices fell 5% year-over-year to $642,195 — the lowest since January 2021. However, long-term price growth remains solid at 5.6% annually.
Presale prices are becoming more attractive, with the premium narrowing to 18%. As completions peak and future supply tightens, rent growth may accelerate. A further 5–7% price adjustment and additional rate cuts could revive investor interest and shift focus to end-users.
Property Trends
Townhouses: Sales up 39.2% YoY in Toronto’s core—space-conscious buyers are flocking in.
Turnkey Homes: Modern, move-in-ready listings are selling fast; dated homes are lagging.
Condos: Prices dipped, but inventory remains high—buyers have time and leverage
Looking Ahead
As 2025 winds down, the GTA housing market shows signs of stabilizing. Lower rates, steady employment, and renewed buyer confidence could help sales rebound toward historical norms in 2026.