GTA home sales reach four-year July high
Aditi Gupta, Content Specialist
The Greater Toronto Area housing market saw a remarkable improvement last month, as monthly sales reached their highest July level in four years.
According to the latest data from the Toronto Regional Real Estate Board (TRREB), a total of 6,100 homes were sold across the region, up 10.9% compared to July 2024. New listings also rose modestly year over year, with 17,613 homes brought to market, a 5.7% increase.
From a seasonally adjusted perspective, the market showed further momentum. Sales increased 13% from June 2025, outpacing the modest 0.4% rise in new listings — a sign of modest tightening in market conditions.
“Improved affordability, brought about by lower home prices and borrowing costs, is starting to translate into increased home sales,” said Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule. “More relief is required, particularly where borrowing costs are concerned, but it’s clear that a growing number of households are finding affordable options for homeownership.”
Home prices remain soft despite stronger demand
While sales activity picked up in July, home prices continued to trend below last year’s levels. The average selling price across the GTA came in at $1,051,719, down 5.5% from July 2024. The MLS® Home Price Index (HPI) Composite Benchmark, which adjusts for home type and quality, declined by 5.4% year-over-year.
Month-over-month, however, prices appeared to stabilize. On a seasonally adjusted basis, both the average price and benchmark remained flat compared to June, suggesting that the market may be nearing a price floor.
Buyers continue to benefit from greater affordability compared to recent years, particularly as borrowing costs have fallen from their 2023 and 2024 peaks. However, TRREB notes that further rate relief would help support a more sustained recovery in prices and activity.
Detached and semi-detached homes drive sales growth
Source: Toronto Regional Real Estate Board
Sales growth in July was led by the low-rise market, particularly detached and semi-detached houses. Detached home sales rose 11.3% year-over-year, with 2,795 properties changing hands — the highest volume among all home types. Semi-detached sales saw the largest percentage jump, up 25.5% annually, with 596 units sold, reflecting renewed interest in mid-density housing.
Townhouse and condo apartment sales also posted gains, though more modestly. 1,047 townhouses were sold in July (+7.9% YoY), while condo transactions rose 5.8% to 1,576 units.
Detached homes in the City of Toronto (416) remain the most expensive segment, selling for an average of $1,572,832, compared to $1,294,424 in the surrounding 905 area. Similarly, Toronto condos sold for $684,257, while those in the suburbs averaged $590,004, highlighting the ongoing price gap between urban and suburban markets.
Market activity heats up in the suburbs
Source: Toronto Regional Real Estate Board
The 905 region continued to outpace the City of Toronto in both sales volume and new listings in July, reinforcing the suburbs’ role as the driving force behind this summer’s housing market activity.
A total of 3,895 homes were sold in the 905, up 10.9% from last year and outnumbering the 2,205 sales recorded in the City of Toronto. Detached homes accounted for the bulk of suburban transactions, with 2,120 units sold, three times the volume seen in Toronto. New listings also rose more sharply in the suburbs, climbing 9.8% year-over-year to 11,605, compared to a slight 1.4% decline in Toronto, where 6,008 homes were brought to market.
Despite higher activity, prices softened across both regions. The average selling price in the 905 region was $1,055,763, down 6.4% from July 2024, while Toronto homes sold for an average of $1,044,576, down 3.9% year-over-year.
What buyers should know about rates and mortgage timing
TRREB remains cautiously optimistic about the GTA housing market’s trajectory, pointing to improved affordability as a key driver of recent gains. However, they emphasize that sustained recovery will depend heavily on further interest rate cuts in the months ahead. TRREB’s Chief Market Analyst, Jason Mercer, highlighted the broader economic importance of a healthy housing market. “Further interest rate cuts would spur home sales and see more spin-off expenditures, positively impacting the economy and job growth,” he said, pointing to ongoing trade uncertainty with the U.S. as a risk to consumer confidence.
The Bank of Canada has held its overnight lending rate at 2.75% since March, as core inflation readings remain sticky above the 2% target. Most economists still expect at least one more rate cut later this year, which could bring added relief, particularly for variable-rate borrowers. Meanwhile, bond yields have stayed elevated, keeping fixed mortgage rates from falling further. But with no guarantee on timing, today's rates could be as low as they’ll go for a while.
For anyone planning to buy or renew in the near future, it’s a smart move to get pre-approved or hold a rate now. Doing so locks in current pricing and offers protection against potential increases as we head into the fall market.
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Aditi Gupta, Content Specialist
Aditi Gupta is a content specialist at Ratehub, with a focus on creating informative content about mortgages.