We’re starting to see the first signs of renewed buyer interest in the Toronto area’s low-rise housing market.
In July, low-rise home sales reached 3,853—up 16% over last year and the highest July total in four years. While this follows a period of 20-year low sales volumes, this year’s activity is now above 2017 levels and just 8% below 2018, marking a clear shift in momentum.
On the ground, we’re finding that low-rise listings that had minimal activity two months ago are now getting far more showings and offers. I expect this uptick in demand to continue into the fall—but without a dramatic rebound. The market is likely to remain sluggish, though clearly no longer stuck at the historic lows we’ve seen for the past two years.
The condo market remains weaker. Sales volumes were up just 5%, and listings rose 18%—but average prices fell 9% year-over-year. That’s the largest annual decline in this cycle and the 15th consecutive month of falling condo prices.
In practice, demand for condos remains sluggish, with relatively few showings in many buildings. In some cases, we’ve seen recent sales close for 15–20% less than similar units sold for just a few months ago. Unfortunately for condo owners, prices are set by the marginal seller—so when a motivated seller slashes their price, it can influence values across the building. These sharp price cuts remain outliers, so they haven’t yet flowed through to average prices, but they’re an important trend to watch.
The soft resale market is also prompting many condo owners to rent their units rather than sell—an issue I’ll explore further in the next section of the report.
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Toronto’s condo resale market has been sluggish through much of 2025, with sales volumes well below historic norms. In watching the market day to day, I began to notice more condos that were initially listed for sale reappearing as rentals.
While it’s not unusual for some owners to pivot from selling to renting—especially in slower markets—the volume felt higher than normal. To see if the data supported this, I looked at every distinct condo apartment listed for sale in the first half of 2024 and 2025, then tracked whether those units sold or ended up rented by the end of July.
For this analysis:
Total listings
Share of listings that sold
Share of listings that ended up rented
More owners are abandoning the sale route and leasing instead. In 2025, roughly 1 in 5 for-sale condo listings ended up rented — compared to ~1 in 7 last year.
At the same time, the share of listings that sold dropped sharply, from nearly half in 2024 to just over a third in 2025. That’s a meaningful shift in market behaviour, signalling weaker buyer demand and less pricing power for sellers.
This shift is happening despite a soft rental market. An increasing number of condo owners are choosing to accept lower rents today in the hope that condo prices will rebound in the future. Time will tell how long they’ll have to wait.
Monthly Statistics
House sales (low-rise freehold detached, semi-detached, townhouse, etc.) in the Greater Toronto Area (GTA) in July 2025 were up 16% compared to the same month last year.
New house listings in July were up 14% compared to last year.
The number of houses available for sale (“active listings”) was up 38% in July compared to the same month last year.
The Months of Inventory ratio (MOI) looks at the number of homes available for sale in a given month divided by the number of homes sold in that month. It answers the following question: If no more homes came on the market for sale, how long would it take for all the existing homes on the market to sell, given the current level of demand? The higher the MOI, the cooler the market is. A balanced market (a market where prices are neither rising nor falling) is one where MOI is between four to six months. The lower the MOI, the more rapidly we would expect prices to rise.
While the current level of MOI gives us clues into how competitive the market is on-the-ground today, the direction it is moving in also gives us some clues into where the market July is heading.
The MOI for houses was unchanged at 4.6 in July.
The share of houses selling for more than the owner’s list price decreased to 24% in July.
The average price for a house in July 2025, $1,259,299, was down 6% from the same month last year.
The median house price in July was $1,080,000, down 6% over last year.
The median is calculated by ordering all the sale prices in a given month and then selecting the price at the midpoint of that list such that half of all home sales are above that price and half are below that price. Economists often prefer the median price over the average because it is less sensitive to big increases in the sale of high-end or low-end homes in a given month, which can skew the average price.
Condo (condominiums, including condo apartments, condo townhouses, etc.) sales in the Toronto area in July 2025 were up 5% compared to the same month last year.
New condo listings were down 2% in July over last year.
The number of condos available for sale at the end of the month, or active listings, was up 18% over last year.
Condo months of inventory decreased to 6.5 MOI in July.
The share of condos selling for over the asking price decreased modestly to 16% in July.
The average price of a condo in July was $673,352, down 9% from last year. The median price was $610,000, down 8% from last year.
See Market Performance by Neighbourhood Map, All Toronto and the GTA
Greater Toronto Area Market Trends
