Toronto Market Activity Spikes as Affordability Improves
Toronto home sales and prices are showing signs of a shift. According to the Toronto Regional Real Estate Board (TRREB), 6,100 properties changed hands in July, marking an 11% year-over-year increase and the busiest July since 2021. Sales also climbed 13% over June, adjusted for seasonality, the largest month-over-month gain of 2025 so far.
This surge in activity comes as affordability improves, with lower home prices and gradually reduced borrowing costs creating new opportunities for buyers across Toronto and the broader GTA.
Prices Fall Again, Opening Doors for Buyers
While demand is up, Toronto home prices continue to trend downward. The average selling price in July was $1,051,719, a 5.5% drop year-over-year. The Home Price Index, which reflects the typical home, also fell 5.4% from July 2024.
In East Toronto, as in many GTA neighbourhoods, falling prices are allowing previously sidelined buyers to re-enter the market. The semi-detached segment saw the biggest jump in sales at 25.5%, followed by detached homes (11.3%) and townhomes (7.9%).
Market Forces: Inventory Growth Meets Cautious Optimism
Supply is on the rise, with 17,613 new listings in July, 5.7% more than in July 2024. Active listings hit 30,215, a 26% increase year-over-year. But even with growing inventory, market conditions tightened as sales outpaced new listings month-over-month.
According to TRREB President Elechia Barry-Sproule, “Improved affordability is starting to translate into increased home sales. But more relief is needed, particularly where borrowing costs are concerned.”
TRREB’s Chief Information Officer, Jason Mercer, echoed that sentiment, suggesting that further rate cuts could fuel both economic growth and job creation by stimulating more housing market activity.
What This Means for East Toronto Real Estate
The latest data suggests a turning point for Toronto home sales and prices. While interest rates remain a concern, the combination of price drops and improved selection is helping more buyers secure homes.
If you’re looking to buy or sell in East Toronto real estate, now may be the time to act. With more listings, increased buyer interest, and favourable pricing conditions, the window of opportunity could be short-lived.
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Toronto home sales and prices are shifting, and opportunity is knocking. Whether you're buying your first home or preparing to list your East Toronto property, our team is here to help.
