August 2025 Real Estate Market Update
The Greater Toronto Area housing market continued to adjust in August, with average prices extending their downward trend for a third consecutive month.
Property values declined by 1.7% in June, a further 4.5% in July, and another 2.8% in August. The average sales price now sits at $1,022,143 — the lowest level since February 2021. Home sale prices are now down 23% from the peak of $1,334,544 recorded in February 2022.
While values have retreated to their lowest level in more than four years, the correction has coincided with a modest resurgence in buyer activity. Sales in August recorded another year-over-year increase, with 5,211 properties changing hands. Equally notable was the reduction in active listings. Inventory has pulled back from the June peak of more than 31,000 active listings to 27,595, a 13% decline.
But even with recent momentum, the market remains far from its historical norms. Inventory is 80% above the 10-year August average, while sales remain 30% below their long-term precedent.
Looking at the various asset classes, detached values dropped sharply again in August, falling $49,090 or 3.6% in just one month, and are now down 8% since May. Prices have returned to early 2021 levels and sit 27% below their peak, historically a strong signal of a buying opportunity as the market appears to be testing its threshold lows.
Condominium values also continued to decline. After a steep 6.5% drop in July, prices slipped another 1.4% in August, bringing the average sales price to $642,195, the lowest since February 2021. Sales activity pulled back after seven consecutive months of increases, dropping 13% for a total of 1,369 transactions. Condo inventory reached 9,105, up 9.2% from last August, though notably this was the first month in more than two years where annual inventory growth did not reach double digits.
Townhomes stood out as the only segment to record a price increase. Values rose by 1.8% to $946,395. Active listings pulled back 12% on a monthly basis, while sales reached 541, up 9% compared to August 2024.
By contrast, the semi-detached segment slipped below the $1 million threshold for the first time since August 2022. The average semi-detached home sold for $980,102, representing a 10.3% loss over the past two months. Sales dropped sharply to 441, a 26% monthly decrease, while inventory remained elevated at 1,485 active listings, 83% above the long-term August norm.
Looking to the fall market, as sales have now recorded three straight months of year-over-year gains and inventory is trending lower from summer peaks, there is potential for a more competitive marketplace; however, it will pale in comparison to 2020-2022, when bidding wars were the norm.
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.
