GTA housing market strengthens in September following rate cut
Aditi Gupta, Content Specialist
The Greater Toronto Area housing market gained momentum in September, as more buyers returned following the Bank of Canada’s rate cut.
According to the Toronto Regional Real Estate Board (TRREB), a total of 5,592 homes were sold across the region, up 8.5% compared to September 2024. New listings rose modestly to 19,260 (+4% YoY), giving buyers continued choice even as sales activity increased. On a seasonally adjusted basis, sales were higher month-over-month, while new listings declined slightly, suggesting modest tightening in some market segments.
“The Bank of Canada’s September interest rate cut was welcome news for homebuyers,” said TRREB President Elechia Barry-Sproule. “With lower borrowing costs, more households are now able to afford monthly mortgage payments on a home that meets their needs.”
Home prices remain below last year’s levels but show signs of stability
Even as sales picked up in September, home prices stayed below last year’s levels. The average GTA home sold for just over $1.05 million, a modest decline from 2024, while benchmark values also dipped by 5.5%.
On a monthly basis, prices held mostly flat compared to August, suggesting that the correction seen over the past year may be nearing its end.
For buyers, this balance between softer prices and improving affordability is creating more opportunities. TRREB notes that while activity is improving, sales still sit below what’s typical for a region of the GTA’s size, meaning there’s still room for the market to strengthen further in the months ahead.
Toronto and 905 markets show balanced growth amid stable prices
Source: Toronto Regional Real Estate Board
Both the City of Toronto and the surrounding 905 region saw stronger sales activity in September, as lower borrowing costs brought more buyers back into the market.
In the City of Toronto, 2,063 homes were sold, marking a 13.2% increase from 1,822 a year earlier. The average selling price was $1,089,918, slightly below $1,116,078 in September 2024 (-2.3% YoY). New listings remained stable at 7,182, showing consistent seller participation.
The 905 region continued to lead in overall volume, with 3,529 sales recorded — up 5.9% year over year — and 12,078 new listings, a 5.8% increase from last year. The average selling price across the suburbs was $1,041,523, down 6.2% from 2024.
Detached and semi-detached homes lead September sales
Source: Toronto Regional Real Estate Board
Sales growth in September was again led by the low-rise market, particularly detached and semi-detached houses. Detached home sales rose 8.6% year over year, with 2,661 properties changing hands, the highest volume among all home types. Semi-detached sales also posted a solid gain of 11.1%, reflecting continued interest in mid-density housing.
Townhouse and condo apartment sales increased more modestly. A total of 925 townhouses were sold across the GTA, up 4.4% from last year, while condo transactions rose 7.2% to 1,437 units.
Despite home prices declining across all housing types, detached properties remained the most expensive segment, selling for an average of $1,359,030. Condos continued to represent the most affordable entry point for buyers, with an average price of $655,231.
Can more rate cuts sustain recovery?
TRREB Chief Market Analyst Jason Mercer emphasized that two more 25-basis-point rate cuts could further align mortgage payments with household incomes and strengthen the market recovery.
Beyond interest rates, TRREB CEO John DiMichele urged policymakers and industry partners to coordinate efforts to revive housing construction amid a slowdown in new starts. “At a time when we are facing a collapse of new construction sales and starts, it’s time for us to come together as a unified voice and break down barriers that impede housing development,” said DiMichele.
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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.