The latest numbers from the Toronto Regional Real Estate Board (TRREB) reveal that the Greater Toronto Area housing market continued to favor buyers in October 2025, as more listings came onto the market and prices adjusted downward. With softer demand and improved affordability, many homebuyers are finding opportunities that weren’t available in previous years.

With lower mortgage rates and reduced selling prices, monthly payments are now more manageable for qualified buyers. Those confident in their job stability may find that this is an ideal time to make a move before the market picks up again.

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The latest October 2025 stats from the Toronto Regional Real Estate Board (TRREB) paint a clear picture: the Greater Toronto Area (GTA) housing market continues to lean in favor of buyers. With home sales dipping and new listings climbing, those who are ready to make a move could find opportunities that simply weren’t available a year ago.

According to TRREB, GTA REALTORS® reported 6,138 home sales through the MLS® System in October — down 9.5% from October 2024. On the other hand, new listings rose by 2.7%, reaching 16,069 homes.

This shift means more options for buyers to choose from, and sellers are feeling the pressure to price more competitively.

💰 Prices and Mortgage Trends

The average selling price in October 2025 was $1,054,372, marking a 7.2% decrease year-over-year. The MLS® Home Price Index (HPI) also dropped 5% compared to last year.

But here’s the silver lining: mortgage rates have eased, and with prices down, monthly payments are becoming more manageable for many buyers.

As TRREB Chief Information Officer Jason Mercer explained, “The monthly mortgage payment for an average-priced GTA home continued to trend lower in October, benefitting from both lower borrowing costs and lower selling prices.”

This combination is giving confident buyers, especially those secure in their employment — a rare opportunity to enter the market under more affordable conditions than we’ve seen in recent years.

While lower prices are good news for buyers, many are still hesitant due to economic uncertainty. TRREB President Elechia Barry-Sproule noted that although some buyers are taking advantage of the current affordability, others remain on the sidelines, waiting for clearer signals about the economy.

Month-over-month data also shows that sales and new listings both dipped slightly from September, suggesting the fall market cooled off earlier than usual.

📌 What the Recent Bank of Canada Rate Cut Means

On October 29, 2025, the Bank of Canada lowered its target for the overnight rate by 25 basis points to 2.25%.

This move is significant for the real estate market for several reasons:

• Lower overnight rates typically influence borrowing costs, including mortgage interest rates, which can make homes more affordable for buyers.

• With the central bank signalling that this cut might be one of the last in this cycle unless inflation or growth deviate significantly, the room for further rate relief may be limited.

• For those considering buying or investing, this rate cut strengthens the argument for acting now before rates potentially rise or remain flat for longer.

In short: lower central-bank rates + lower home prices = enhanced opportunity for qualified buyers. For sellers, it means being realistic about pricing and preparing for competition.

Looking ahead, TRREB CEO John DiMichele emphasized the importance of housing as “essential economic infrastructure” and called for greater collaboration between the public and private sectors. With Ontario’s growing population, he pointed to the need for more innovation, faster construction, and updated government policies, including modernized tax rules and zoning reforms — to meet housing demand.

From my perspective as a local real-estate professional, this is a strategic window for buyers who have been waiting for prices and mortgage rates to align.

While market confidence is still rebuilding, today’s buyers have more negotiation power and less competition compared to the boom years.

If you’re thinking about buying or investing, this could be the right time to explore opportunities especially before market activity picks up again once economic conditions stabilize.

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The Greater Toronto Area (GTA) housing market saw renewed energy in September 2025 moving into the Fall market, with home sales up 8.5% year-over-year, reaching 5,592 transactions, according to the Toronto Regional Real Estate Board (TRREB).

The Bank of Canada’s September rate cut encouraged more buyers to jump back in, taking advantage of lower monthly mortgage payments and more choice in listings. With new listings down month-over-month, some segments of the market are beginning to tighten again.

Year over year, prices were down slightly, with the average selling price at $1,059,377—a 4.7% decrease from last year, but largely steady from August.

TRREB experts say a few more rate cuts could further align mortgage payments with buyer incomes, fueling even more activity.

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The Greater Toronto Area (GTA) housing market experienced a notable shift in September, driven by improving affordability and a corresponding increase in buyer confidence. Following the Bank of Canada’s recent interest rate adjustment, the market saw renewed engagement, allowing more prospective homeowners to navigate financing options and explore the diverse housing inventory across the region.

Market Activity: Sales Outpace Supply Growth

According to data from the Toronto Regional Real Estate Board (TRREB), September 2025 home sales demonstrated a significant year-over-year increase:

• Sales Growth: GTA REALTORS® reported 5,592 home sales, an 8.5% increase compared to September 2024. This signals a welcome return of buyers previously on the sidelines due to high borrowing costs.

• Supply Dynamics: While new listings also rose by 4% year-over-year (19,260 listings), the pace of sales growth was stronger than the increase in supply.

• Month-over-Month Trend: On a seasonally adjusted basis, September sales were up from August, while new listings actually declined. This suggests a potential tightening of market conditions in high-demand areas, particularly in established communities across Toronto, Vaughan, Markham, and Richmond Hill.

Expert Commentary on Affordability

TRREB President Elechia Barry-Sproule noted the direct impact of the rate decision: “The Bank of Canada’s September interest rate cut was welcome news for homebuyers. With lower borrowing costs, more households are now able to afford monthly mortgage payments on a home that meets their needs.” This improved affordability is anticipated to have a positive ripple effect, supporting related economic activity such as home renovations and local service consumption.

Price Stability on the Horizon?

Despite the rise in sales, aggregate home prices continued to adjust compared to the previous year, offering buyers favorable conditions.

• Year-over-Year (YoY) Prices: The MLS® Home Price Index (HPI) Composite benchmark was down 5.5% YoY, and the average selling price decreased by 4.7% to $1,059,377 compared to September 2024.

• Month-over-Month (MoM) Stability: A closer look at the MoM figures suggests prices may be finding a floor. The average selling price was virtually flat from August (up 0.2%), and the HPI Composite only edged down 0.5%. This indicates a potential stabilization as greater demand absorbs available inventory.

Strategic Outlook for Buyers and Sellers

The current environment presents distinct opportunities for both sides of the market:

• For Buyers: The fall market offers a strategic advantage: lower interest rates, continued strong selection, and a potential window for negotiation. However, sustained demand coupled with slowing new listings could lead to increased competition moving forward.

• For Sellers: Strategic and realistic pricing remains paramount. Well-maintained and properly positioned properties continue to attract qualified buyers, especially those located near key amenities, transit, and quality schools.

TRREB’s Chief Information Officer, Jason Mercer, also emphasized the long-term context: “Two more 25-basis-point interest rate cuts by the Bank of Canada would see monthly mortgage payments move more in line with homebuyers’ average incomes, further spurring home sales and related economic activity.”

In summary, the September GTA market showed encouraging signs of recovery driven by improved financial accessibility. While the market is still below its long-term historical norms, the combination of rising sales and stabilizing prices suggests a foundation is being set for future growth, contingent upon ongoing economic stability and rate decisions.

Stay Informed

Understanding the nuances of the GTA market is critical for making informed real estate decisions.

• If you are considering a purchase, leveraging the current buyer-favorable conditions requires timely market insight.

• If you plan to sell, a refined, data-driven strategy is essential to maximize your property's value as demand continues to rise.

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