September 2025 Toronto/GTA Residential Market Update

Market Conditions as of September 2025

1. Sales & Inventory

~5,211 homes sold in August 2025, up ~2.3% year-over-year.
New listings are up significantly — roughly 9-10% more than a year ago. Active listings are also rising, giving buyers more choice.
Because listings are growing faster than demand in many segments, there is more leverage for buyers. Homes are staying on market longer than in tighter years.

2. Prices & Types

The average sold price in the GTA across all property types is down compared to last year. For example, condos are one of the weaker segments: prices are dropping, and sales/slower demand.
Detached homes are still expensive, but their year-over-year decline is steeper than some other property types.
Low-rise homes (detached/semi/townhouses) are down ~27% from their February 2022 peak.

3. Interest Rates, Confidence, and Negotiation

Buyers are hesitant: interest rates remain a concern, and economic / employment uncertainties are weighing on consumer confidence.
Possible rate cuts (or at least expectation thereof) are in the air, which could draw more buyers off the sidelines.
Because many homes now have more supply and fewer bidding wars, conditional offers are doing better. Homes that are staged or move-in ready are doing relatively well; ones needing renovation or in oversupplied areas are taking longer to sell or require price adjustments.

1. Rental Price Trends

Average rent (all types, all bedroom counts) in Toronto is about $2,600/month per Zillow data, which is slightly down (about $100) year-over-year.
Median rent across all types is ~$2,459/month in Toronto, down ~4% over the past year.
One-bedroom unfurnished units in Toronto are about $2,050/month, down slightly compared to last month; furnished one-bedrooms saw a small month-over-month increase to ~$2,031.

2. Supply & Vacancy / Competition

Rental listings are relatively abundant; for many renters, more options exist now, especially for unfurnished units outside the downtown core.
Downtown and “hot-neighbourhoods” still see strong demand, which helps fuel slightly higher rents, especially for well-maintained or furnished spaces.

Here are items that buyers/renters should keep an eye on:

Interest Rate Moves: If the Bank of Canada reduces rates, we might see increased bidding and price stabilization. For now, rates are keeping many buyers cautious.
Economic/Job Market Conditions: Uncertainty in employment or inflation could dampen buyer appetite further or slow rent growth if people become more cost-conscious.
Inventory Trends: Because supply is rising, buyers have more negotiation power. Sellers need to price well and possibly offer incentives.
Quality / Condition Divide: There’s a widening gap between properties that are move-in ready / desirable location vs older / less well-maintained homes. The former are holding value better.

For Buyers:

Because supply is better now, this could be a good window to buy — negotiating power is increased.
Focus on condition: a home that needs little work will often save you more in the long-run (closing costs, renovations).
Get pre-approval and be ready; if rates drop or confidence improves, more competition may return.

For Renters:

Look outside downtown if possible—prices are somewhat lower and there’s more supply in peripheral areas.
Consider unfurnished units if you have furniture—or shared spaces—to save.
Be ready to act quickly for better units; condos and well-located or well-kept units still go fast.