September 2025 GTA Real Estate Market Update
The Greater Toronto Area (GTA) housing market showed encouraging momentum in September, with home sales rising compared to last year as more buyers returned to the market. Lower borrowing costs and a wider selection of listings have created new opportunities for both buyers and sellers.
According to the Toronto Regional Real Estate Board (TRREB), REALTORS® reported 5,592 home sales through the MLS® System in September — an 8.5% increase from the same month in 2024. Meanwhile, new listings climbed to 19,260, up 4% year-over-year, providing a healthy balance of supply and demand across many GTA neighbourhoods.
Interest Rate Relief Boosts Buyer Confidence
The Bank of Canada’s September rate cut to 2.5% brought welcome relief for homebuyers. Lower borrowing costs have allowed more households to secure manageable monthly mortgage payments, making homeownership attainable for many who were previously on the sidelines.
TRREB President Elechia Barry-Sproule emphasized that this policy shift will not only benefit buyers but also help stimulate the broader economy through housing-related spending and investment.
Prices Hold Steady as Market Balances
The average selling price in September reached $1,059,377, down 4.7% year-over-year, while the MLS® Home Price Index Composite Benchmark fell 5.5% compared to last year. On a monthly basis, however, prices remained stable, inching up by 0.2% from August — an early signal of balance returning to the market.
This equilibrium suggests that buyers are negotiating confidently, while sellers continue to benefit from consistent activity across many segments.
What This Means for Buyers and Sellers
For Buyers:
The current market presents an opportunity to purchase with greater affordability and negotiating power. With interest rates easing and a wide range of listings available, this could be the ideal time to secure a home before demand strengthens further in the coming months.
For Sellers:
While average prices have adjusted, motivated buyers are re-entering the market. Proper pricing and professional marketing remain key to standing out. Homes presented well — both visually and strategically — continue to attract strong interest and timely offers.
Market Outlook
TRREB Chief Information Officer Jason Mercer noted that while sales remain below historical levels, momentum is building. Further modest rate cuts could bring more buyers back into the market, aligning affordability with income levels and sparking continued recovery across the region.
As affordability improves and buyer confidence grows, the GTA real estate market is poised for a steadier and more active finish to 2025.
Considering Your Next Move?
Whether you’re planning to buy, sell, or invest, understanding today’s market conditions is key to making smart real estate decisions.
Connect with Evolved Realty today to discuss how these market trends can guide your next move with confidence.