The Toronto housing market is stabilizing in June 2025 as high interest rates, rising inventory, and shifting buyer demand cool what was once Canada’s hottest real estate scene. While some property types are seeing modest price declines, Toronto real estate remains expensive and competitive in key neighborhoods.
📊 Toronto Housing Prices – June 2025
According to the Toronto Regional Real Estate Board (TRREB), the average home price in Toronto is $1,128,100, showing a 2.5% year-over-year decline and a 0.6% dip month-over-month.
- Detached Homes: $1,462,700 (↓ 5.1% YoY)
- Semi-Detached: $1,122,300 (↓ 1.9% YoY)
- Townhomes: $957,800 (↓ 0.4% YoY)
- Condos: $730,100 (↑ 1.2% YoY)
(Source)
While the detached segment continues to soften, Toronto condos are seeing renewed demand due to relative affordability and investor interest.
🏘️ Toronto Home Sales & Inventory
In May 2025, TRREB recorded 7,013 home sales, a 7.8% drop from May 2024. Inventory, however, is climbing, with new listings up 20.5% year-over-year. The result: more choices for buyers, but also slower sales and longer market times.
- Sales-to-new listings ratio: 47% (buyer-leaning balanced market)
- Average Days on Market: 25 days
- Active Listings: 20,342 (↑ from 16,505 in 2024)
(Source)
📉 Why the Market is Cooling
Toronto is being impacted by:
- 🔺 High mortgage rates
- 🧊 Cooling investor activity
- 🏗️ Surge in condo completions
- 💳 Affordability fatigue among buyers
In fact, a recent Urbanation report found that 63% of condo landlords are offering incentives like free rent, gift cards, and free parking to fill units in a crowded rental market.
🏦 Interest Rates Holding Steady
The Bank of Canada held its key interest rate at 2.75% in June, citing sticky inflation and global uncertainty. This rate pause may help bring stability, but monthly payments remain steep for many Toronto buyers.
🏗️ New Supply and Government Incentives
Toronto continues to see record levels of housing construction, particularly in the pre-construction condo space.
Key developments include:
- 🚧 More density approvals near TTC and GO Transit stations
- 💼 First-time homebuyer rebates & shared equity programs
- 🧱 Modular housing and “missing middle” projects gaining momentum
(City of Toronto Housing Plan)
Despite the push for supply, demand-supply mismatch persists—especially for ground-level housing.
🔮 Toronto Housing Market Outlook – Summer 2025
Heading into summer, analysts expect continued price pressure on detached homes, while condos and townhouses may hold steady. Buyers have more leverage now than at any point in the last 3 years, but must weigh borrowing costs against more negotiable pricing.
📍 Key insight: Toronto isn’t crashing- it’s correcting.
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Canada Housing Market 
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