GTA Real Estate: Buyers Hesitate, Sellers Adapt in a Cooling Market

Bram Sandow
Jul 10
2 min read

June 2025 brought warm weather to the Greater Toronto Area (GTA), but the real estate market stayed cool. High borrowing costs, sluggish job growth, and ongoing trade uncertainties with the U.S. have kept buyers cautious. Meanwhile, sellers face a market where preparation and strategy are key to standing out. Here’s a deep dive into the current GTA housing trends, actionable insights for buyers and sellers, and what to watch moving forward.

Market Snapshot: A Buyer’s Market Takes Shape

The GTA saw 6,243 home sales in June 2025, a 2.4% drop from the previous year, despite a 7.7% surge in new listings (19,839 total). This imbalance signals a market tilted in favor of buyers, with more options and less pressure to act quickly. The average home price dipped to $1,101,691, down 5.4% year-over-year, while the Home Price Index (HPI) benchmark fell 5.5%, reflecting broader softening.

Why Buyers Are Holding Back

Economic uncertainty is the main culprit. The Bank of Canada’s decision to pause rate cuts has left borrowing costs elevated, and with job growth stalling, many buyers— even those well-qualified—are waiting for clearer signals. This hesitation is shaping a market where patience is a buyer’s biggest asset.

Sellers Face a New Reality

For sellers, the days of quick offers and bidding wars are fading. Homes are sitting longer on the market, with the Property Days on Market (PDOM) averaging 27 days in June. To succeed, sellers must price strategically, monitor competing listings, and prepare for extended timelines.

Segment Spotlight: Detached Homes vs. Condos

Detached Homes in the 905: A Pocket of Resilience

Properties in the 905 (suburban GTA) are holding up better, particularly detached homes. These properties attract steady interest when priced accurately, with a smaller gap between listing and sale prices. Buyers seeking long-term value are still active in this segment, making it a bright spot in an otherwise cautious market.

Condos in the 416: Oversupply and Opportunity

Toronto’s condo market (416 area code) is under strain, with inventory piling up and prices dropping nearly 6.5% year-over-year. While some units appear as bargains, selective buyers are taking their time. Sellers need to focus on standout staging and competitive pricing to capture attention in this crowded segment.

What’s Next for the GTA Market?

With economic signals mixed and buyer confidence low, the GTA real estate market is likely to remain buyer-friendly in the near term. Here are key trends to monitor:

Buyer Leverage Grows: With homes lingering longer, buyers can negotiate harder and compare more options. Expect longer decision-making cycles as urgency remains low.
905 Detached Stability: The suburban detached market will likely continue to outperform, especially for well-priced homes targeting long-term buyers.
416 Condo Challenges: Oversupply will keep pressure on Toronto’s condo prices, but strategic sellers can still attract selective buyers with strong presentation.

Final Thoughts

The GTA real estate market in June 2025 reflects a cautious, buyer-driven environment. For sellers, success hinges on preparation, realistic pricing, and patience. For buyers, the abundance of choice and time to decide creates opportunities to secure value. By staying informed and strategic, both sides can navigate this cooling market with confidence.

Stay tuned for next month’s update as we track how economic shifts and policy decisions shape the GTA’s housing landscape.