August sales edge higher in Toronto, but momentum cools from July
Aditi Gupta, Content Specialist
The Greater Toronto Area housing market showed a modest improvement in August, with home sales edging higher compared to last year. According to the latest data from the Toronto Regional Real Estate Board (TRREB), 5,211 homes were sold across the region — a 2.3% increase from August 2024.
But while sales rose year over year, momentum cooled from July. On a seasonally adjusted basis, transactions actually slipped compared to the previous month, highlighting that many buyers are still waiting for better affordability conditions before entering the market.
TRREB President Elechia Barry-Sproule noted that additional interest rate cuts from the Bank of Canada could help offset economic headwinds such as tariffs, while also making homeownership more attainable. “Greater affordability would not only support more home sales but also generate significant economic spin-off benefits,” she said.
Buyers have more options as listings climb
Supply continued to build across the GTA in August, giving prospective buyers more breathing room. TRREB reported 14,038 new listings for the month, up 9.4% compared to August 2024. The increase in inventory outpaced the growth in sales, keeping the market well supplied as the fall season approaches.
On a month-to-month, seasonally adjusted basis, new listings also edged higher compared to July. This steady flow of homes coming to market means buyers are benefiting from more choice across property types and price ranges.
Prices hold steady, but still below last year
Home prices in August 2025 remained lower than a year ago. The average selling price across the GTA came in at $1,022,143 in August, down 5.2% from August 2024. The MLS® Home Price Index (HPI) Composite Benchmark also fell 5.2% year over year, reflecting softer values across most property types.
However, prices appear to have stabilized on a monthly basis. Both the average selling price and the benchmark were flat compared to July on a seasonally adjusted basis. With more listings available and buyers taking their time, price growth is likely to remain muted in the near term.
Buyers favour houses; condo sales soften
Source: Toronto Regional Real Estate Board
Sales growth in August was led by detached homes, which recorded 2,411 transactions, an increase of 5.9% compared to last year. Semi-detached houses also gained ground, rising 2.6% year over year with 441 sales, while townhouses saw a smaller 2.4% increase, with 927 units sold. Condo apartments saw a decline of 4.9%, with only 1,369 changing hands.
Prices moved lower across the board. Detached homes averaged $1,312,240 in August, down 7.5% annually, and semi-detached homes decreased by 4.2% to $980,102. While townhouse prices overall slipped by 3.8% to $860,178, they increased by 1% in the 416 region. Condos saw the sharpest price drop, falling 5.0% to $642,195.
Suburbs lead activity while Toronto lags behind
Source: Toronto Regional Real Estate Board
The 905 continued to do the heavy lifting in August, accounting for nearly two-thirds of all transactions. Suburban sales came at 3,432 (+1.7% YoY), compared to 1,779 sales in the City of Toronto (+3.5% YoY). Supply was also concentrated outside the city: the 905 brought 9,500 new listings to market (+9.9% YoY), versus 4,538 in Toronto (+8.2%).
Prices eased in both regions year over year. Toronto’s average price came in just under the million mark at $992,085 (-3.7% YoY), while the 905 averaged $1,037,723 (-5.9% YoY). With more listings and a larger share of sales in the suburbs, and slightly steeper price declines there, buyers continue to find the most options outside the city core.
Affordability is still out of reach for many households
Even with lower borrowing costs and softer prices than a year ago, the math on an average-priced GTA home remains tough for a typical household. As TRREB’s Jason Mercer put it, households earning the average income “are still finding it challenging” to manage the mortgage on an average-priced home; further relief in borrowing costs would pull more sidelined buyers back into the market.
For would-be buyers, the practical takeaway is to control the variables you can: secure a rate hold or pre-approval, compare fixed vs. variable scenarios, widen your search to more affordable home types or neighbourhoods, and budget for closing and carrying costs.
Aditi Gupta, Content Specialist
Aditi Gupta is a content specialist at Ratehub, with a focus on creating informative content about mortgages.