We’re starting to see clear signs of financial stress emerging across the GTA housing market - and the data on Power of Sale (POS) listings shows where that stress is hitting hardest.
WATCH NOW: Suburban Markets Lead the Rise in Power of Sales
Mortgage arrears have climbed above 0.4% at many major banks and as high as 6% at some private lenders. These rising arrears are now showing up in the resale market as more forced sales hit the MLS, adding new inventory at a time when listings are already near historic highs and buyer demand remains sluggish.
When we look at where these Power of Sale listings are happening, the highest shares are in parts of the GTA that saw the biggest surge in prices and demand during the pandemic — as buyers rushed from Toronto to the suburbs and exurbs. Municipalities like Brock, Ajax, Stouffville, Oshawa, and Brampton stand out with the largest share of POS listings this year.
And the financial stress in some of these areas appears to be spilling over into prices. Average home prices in Brock are down 15% year-over-year, while Stouffville has seen a 13% drop — two of the steepest declines across the region.
By contrast, many of the more established suburbs are holding up better. Aurora, Markham, and Vaughan are seeing among the lowest shares of Power of Sale listings, suggesting that distress across the GTA remains uneven — hitting some markets far harder than others.
Detached homes are leading this trend, accounting for just over 1% of all new detached listings this year, compared to just 0.66% for condominium apartments. These homeowners typically carry larger mortgages, and many bought at the height of the pandemic boom when rates were at record lows. As those loans reset, some are now struggling to keep up.
Zooming in further, there are four GTA neighbourhoods where Power of Sale listings make up more than 4% of all new listings, with Highland Creek in Toronto topping the list at nearly 10%.
Power of Sale listings still make up a small share of the overall market, but they’re an important indicator of where financial strain is emerging. As more of these homes come to market, they could add to the growing inventory in certain pockets — and potentially put more downward pressure on prices if demand remains soft. It’s a trend worth keeping a close eye on heading into the winter market.
(Methodology: Power of Sale listings are based on MLS data for new listings in 2025 where the seller name indicates a financial institution or specifies “Power of Sale.”)
John Pasalis is President of Realosophy Realty. A specialist in real estate data analysis, John’s research focuses on unlocking micro trends in the Greater Toronto Area real estate market. His research has been utilized by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC) and the International Monetary Fund (IMF).
Have questions about your own moves in the Toronto area as a buyer, seller, investor or renter? Book a no-obligation consult with John and his team at a Realosophy here: https://www.movesmartly.com/meetjohn
October 1, 2025
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