July 2025 Real Estate Market Update

The Greater Toronto Area housing market is showing signs of recovery amidst high inventory and improved affordability.

Home sales across the region saw their strongest results for the month of July since 2021, with 6,100 transactions — an annual increase of nearly 11% over July 2024.

While demand continues to improve, the supply side showed a notable downward shift. New listings decreased in July compared to June. However, active inventory remained historically high, about 30,215 properties, up 26% from the same month last year.

Meanwhile, home values edged lower in July, with the average price falling by 5.5% year-over-year. Month-over-month, the average selling price dropped 4.5% to $1,051,719.

Detached prices dipped 2.2% to an average of $1,361,660, compared to June. Active inventory ended the month at 13,676 properties for sale, representing a 3.3% monthly decrease, but still 11.6% higher than July 2024. Sales have remained consistent over the past three months, with nearly 2,998 sales in May, 3,011 sales in June, and 2,795 in July.

Semi-detached properties had an average sales price of $1,041,359. Inventory fell to 1,690 active listings, while sales remained well below historical norms, with 596 transactions, 0.8% lower than June.

Townhome values declined by 7.4%, with the average sales price settling at $849,380, while inventory remains elevated, with 2,257 properties listed for sale. Sales activity increased, rising 5.3% from June to a total of 596 transactions.

Condominiums averaged $651,483, as active listings remain high at 10,013. This has created real value opportunities for buyers in this segment. Sales totalled 1,576 units, marking the seventh consecutive month of year-over-year declines.

Although sales activity is now improving and new listings are increasing at a slower pace, indicating a modest tightening of market conditions, the healthy level of inventory is sufficient to keep home prices trending sideways over the short-term. However, if the recovery in sales accelerates, the favourable conditions for homebuyers may being slowly slipping away, as inventory levels decline and home sellers gain more bargaining power. The second half of 2025 could mark a decisive period for those waiting on the sidelines. It’s possible that many prospective buyers may eventually look back at the current environment as a window of opportunity.

If you would like to know how the real estate market performed in your neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.