Average Price Dips Below $1.1M, Inventory Remains High
In July, the GTA real estate market continued its trend of flat sales and elevated inventory — but this time, prices finally cracked under pressure. While sales appear to have improved on the surface, buyer sentiment remains cautious, and the market is far from a true recovery.
GTA Real Estate Key Market Highlights
Home Sales: 6,100 Units (Up 10.9% YoY)
The Good News: Sales Up 10.9%. 6,100 homes were sold in July — slightly below June’s 6,243 but still up 10.9% year-over-year.
Given that market typically slows down in July, this seasonally adjusted pump in sales is a sign that some buyer and sellers are slowly coming to terms on the price, but overall demand is still low.
New Listings: 17,613 Units (Up 7.7% YoY)
New listings decline, but the market still haven’t resolve existing inventory.
New listing in July dropped by ~2,200 compare to June.
Active Listings: 30,215 Units (Up 26.2% YoY)
Active listings still exceeded 30,000, 26% higher than last year.
Average Selling Price: $1,051,719 (Down 5.5% YoY)
Psychological Threshold Broke: Average selling price dropped to $1,051,719 — The first time in 12 months that prices fell into the $1.05M range. Down nearly $50,000 from June and 5.5% lower year-over-year.
Condos were hit hardest, with average prices falling to $677,057, the lowest in nearly two years.
Average Days on Market: 41 Days (Up 13.9% YoY)
Time on Market Remains Long. Homes now take 41 days to sell on average — five days longer than last year, though one day shorter compared to June. The stalemate between buyers and sellers continues.
Months of Inventory: 5.0 Months
Total months of inventory remained at 5.0 months, squarely in buyer’s market territory.
Market Outlook
A False Sense of Recovery
Despite many other headlines screaming a rebound is ahead, the market confidence is by no means on the uptick. This climb in sales volume has reflects that some sellers and buyers are finally coming to terms on the price, which is lower than the listing.
Key signs of the current market:
1. Inventory remains well above the 10-year average
2. Prices have dropped over 20% from the 2022 peak
3. What’s really shifting? Sellers are more desperate than buyers
Advice for Buyers:
This is a rare window for nitpicking. Ample inventory means more choice and stronger negotiating power — But don’t waste time chasing the “perfect bottom.” Focus on value, not timing.
Advice for Sellers:
The market hasn’t turned. Waiting for a price rebound is wishful thinking.
Homes that are selling now are those where sellers have realistically adjusted their prices to become the lowest among similar listings.
If you’re still asking: “Should I sell right now?” It probably means you don’t have to — And in that case, I’d say: Don’t sell.
Because unless you’re fully prepared to face the real market price, listing your home now only means joining over 30,000 other properties…competing, undercutting, and ultimately collect dust on the shelf.
So — If you can wait, then wait. If you can’t wait, price it to sell. Don’t wear yourself out fighting the market.
Published on: 2025-08-12
Read More:
GTA Real Estate Market Watch June 2025
GTA Real Estate Market Watch May 2025
GTA Real Estate Market Watch April 2025
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