Home sales in the GTA rose 10.9% in July, hitting the highest level since 2021, as lower prices and borrowing costs boost buyer confidence.
Sales Surge Marks Strongest July in Four Years
The Greater Toronto Area (GTA) housing market recorded a notable rebound in July 2025, with home sales rising by 10.9% year-over-year, reaching 6,100 transactions, the highest July total since 2021. According to the Toronto Regional Real Estate Board (TRREB), this uptick signals renewed confidence among buyers amid shifting economic conditions.
Prices Drop, Drawing More Buyers
The average selling price across the GTA dropped 5.5% from the same month last year, landing at $1,051,719, while the composite benchmark price fell 5.4%. TRREB attributes the increased activity to improved affordability through softened home prices and a slight easing in borrowing costs.
Month-over-Month Growth Reinforces Momentum
On a seasonally adjusted basis, sales rose 13% from June to July, reinforcing a positive short-term trend. TRREB President Elechia Barry-Sproule noted that more households are successfully entering the market, though she stressed that further relief—particularly in lending rates—is needed to sustain growth.
More Listings, More Choice
A total of 17,613 new listings were added in July, marking a 5.7% increase compared to July 2024. Active listings surged 26.2% year-over-year to reach 30,215 homes, giving buyers more options and bargaining power.
Economic Conditions Remain a Key Factor
While the numbers point to a more balanced and active market, TRREB officials caution that the pace of recovery remains tied to interest rate movements and overall economic stability. “Borrowing costs continue to weigh on many buyers,” Barry-Sproule added, calling for policy measures to further ease housing affordability pressures.
Outlook: Cautious Optimism Ahead
The GTA market’s July performance offers a glimpse of optimism for both buyers and sellers. However, sustained growth will depend on broader financial conditions and whether affordability continues to improve in the coming months.
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