Average GTA Home Price Falls Below $1.06M – Lowest in 3 Years

The Greater Toronto Area housing market continued to cool in September 2025, as the average selling price fell to $1,059,377 according to the Toronto Regional Real Estate Board (TRREB). That’s down 4.7% year-over-year, marking the lowest average price since 2022.

The MLS® Home Price Index (HPI) Composite Benchmark also declined by 5.4% compared to last year, reflecting widespread price softness across all property types.

Despite a slight seasonal uptick in sales, affordability challenges and higher inventory continue to weigh heavily on the market.

Source: TRREB Market Watch Report, Sept 2025

📊 Comparing 2025 to Pandemic-Era Highs

To understand the scale of the correction, it’s worth comparing current prices to the pandemic boom.

📈 At its peak, the average GTA home sold for over $1.2 million, driven by low interest rates and intense buyer competition.
Fast forward to 2025, and the average has dropped nearly $170,000, reflecting a major shift in market dynamics.

Reference: TRREB 2022 Year in Review and Outlook

🏠 What’s Driving the Price Decline?

1. Rising Inventory and Slower Demand

New listings rose to 19,260 in September 2025, a 4% year-over-year increase, while active listings are up significantly from last year.
More supply combined with hesitant buyers has pushed months of inventory near 5.3, signaling a more balanced – or even buyer-leaning – market.

Reference: TRREB Market Data

2. High Interest Rates Keep Buyers on the Sidelines

Even with minor rate relief from the Bank of Canada, borrowing costs remain high.
Many buyers who qualified for larger mortgages during the pandemic now face reduced purchasing power, limiting upward price movement.

3. Detached Homes Seeing the Steepest Drop

Detached properties have experienced the largest year-over-year price declines, averaging -7% across the GTA.
Condos, semi-detached, and townhomes have also slipped, though less sharply, ranging between -3% to -5% declines.

Reference: WOWA Real Estate Data

4. Investor Caution and Market Psychology

Investor activity remains muted amid uncertainty. Many homeowners are delaying sales, while investors wait for deeper corrections before re-entering.
This cautious sentiment has created a slower, more hesitant market atmosphere compared to the frenzied pandemic years.

🔮 What’s Next for Toronto’s Housing Market?

Economists expect prices to remain 10–15% below 2022 highs well into 2026, especially if listings continue to outpace demand.
If October and November mirror September’s numbers, the GTA’s 2025 annual average could dip close to $1 million, a symbolic but significant psychological threshold.

RBC Economics recently noted that Ontario and B.C. will likely see the deepest corrections in the coming year as affordability remains stretched and pre-construction markets freeze.

Reference: RBC Housing Market Outlook 2025

📌 Key Takeaways

Average GTA home price: $1,059,377 (Sept 2025)
Lowest level since: 2022
Down from peak: 15–20% since early 2022
Detached homes: -7% YoY
Inventory: Rising to multi-year highs
Outlook: Market balance shifting in buyers’ favor

🧭 Final Thoughts

The GTA housing market has entered a clear correction phase, marking a shift from years of overheated growth to a more balanced playing field.
With interest rates stabilizing and inventory climbing, buyers are slowly regaining leverage, but affordability remains a challenge.

Expect further clarity once October 2025 data arrives, confirming whether prices are bottoming out or if there’s still room to fall.

References:

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