Greater Toronto Housing Market Sees Best July in Four Years

Buyer Confidence Returns in GTA as Sales Rebound

The Greater Toronto Area (GTA) housing market just clocked its strongest July since 2021, with rising sales volumes, new listings, and price stability all pointing to a shift in market sentiment.

According to the Toronto Regional Real Estate Board (TRREB), home sales in July 2025 were up 12.8% year-over-year, while new listings rose by 10.3%. The average selling price for all property types was reported at $1,095,600, representing a modest 1.5% annual gain.

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What’s Driving the Surge?

Several key factors are contributing to the unexpected July surge:

• Improved affordability: After two years of elevated interest rates, stability in borrowing costs has helped many first-time and move-up buyers re-enter the market.
• Seasonal timing: With spring 2025 being relatively quiet, pent-up demand spilled into summer.
• Population growth: Continued immigration and tight rental supply are encouraging more people to consider ownership.

TRREB President Jennifer Pearce stated:

“This is a confidence-driven rebound. Many buyers had paused, but as borrowing rates stabilized, activity returned — especially in the suburbs.”

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July 2025 GTA Housing Market Snapshot

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Where Is the Recovery Strongest?

TRREB notes that outer suburban areas — including Durham, Peel, and Halton — are seeing the highest gains in detached and semi-detached home sales.

In contrast, the downtown Toronto condo market remains relatively soft, with inventory levels still higher than demand in some pockets.

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Mortgage Expert Insight

For mortgage brokers and lenders, this July bounce could mark a shift toward a more balanced mortgage market in Ontario.

• Fixed-rate demand continues to dominate, but the volume of variable rate pre-approvals has picked up slightly amid rate cut speculation.
• Refinancing volumes remain soft, but brokers report an uptick in first-time buyer consultations, especially for properties under $900,000.

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What to Watch Next

• Bank of Canada’s next rate decision in September could determine whether this momentum continues.
• Federal housing affordability policies (like first-home savings accounts and CMHC incentives) may further influence fall buyer behavior.

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Final Word

After two sluggish years, GTA’s July sales data suggests the market may be turning a corner. Whether this trend holds through the fall depends largely on interest rate moves and inventory flow — but for now, buyer confidence is back.