Buyers Are Back, But Inventory’s Playing Hard to Get – GTA July 2025

Bram Sandow
1 day ago
2 min read

Sales Heat Up, But Inventory Stays Cool

The GTA housing market found some summer energy in July, with 6,100 homes sold—a 10.9% jump compared to July 2024. Buyers are clearly back in the game. But here’s the twist: new listings only rose 5.7%. That gap means demand is outpacing supply once again, tightening inventory and creating more competition for well-priced, move-in-ready homes.

Prices: Still on a Gentle Slide

Despite the uptick in sales, average prices dipped. Across the GTA, the average home sold for $1,051,719, down 5.5% year-over-year. The MLS benchmark price slipped by a similar 5.4%, reflecting a softening across most property types.

In the city, the drop was more pronounced. Toronto detached homes saw an 8.6% annual decline, while 905-area detached homes fared slightly better with a 5.2% drop. The steepest correction came from Toronto condos, which fell nearly 10% year-over-year, a sign that urban condo inventory remains under pressure.

Speed of the Market

Homes that are priced right are moving quickly. In July, sold homes spent an average of 30 days on the market, but active listings are sitting closer to 36 days. The message is clear—buyers are picky, and anything overpriced or underwhelming is being skipped over.

Spotlight on Townhomes and Regional Trends

Looking deeper into the TRREB numbers:

Toronto Townhomes averaged $821,101, down 0.8% month-over-month and 1.7% year-over-year. Sales were up 14.2% annually, but new listings dropped nearly 14% from June.

York Region (all home types) averaged $1,243,315, holding steady month-over-month but down 4.8% year-over-year. Sales rose 12.1% annually, with listings up 18% year-over-year—giving buyers in York more choice.

Toronto (all home types) saw the biggest monthly price slide, down 7.8% from June to $1,044,576, and 3.9% lower year-over-year.

Rates & Affordability

The Bank of Canada held its key interest rate at 5.0% in July. While fixed mortgage rates have eased slightly, affordability remains the biggest hurdle—especially for first-time buyers and those looking to trade up. That said, the recent rate stability is coaxing some sidelined buyers back into the market.

What to Watch Next

Well-priced homes are flying: With sales outpacing listings, quality properties that show well aren’t sitting long.

905 detached homes are holding up: Family buyers still want space, and with smaller price drops outside the city, these markets remain competitive.

416 condos face challenges: With more choice for buyers, units must be priced and presented perfectly to sell quickly.

Bottom line: The GTA market is in a phase where opportunity exists on both sides. Sellers who prepare and price strategically can still achieve strong results, while buyers—especially in the condo market—can take advantage of selective conditions and negotiate.