Market Momentum Returns: Real Estate Activity Growing This Summer | July 2025

by David Rizzuto

The Greater Toronto Area's summer real estate market is finally showing strong signs of tightening market conditions. After months of declining sales activity and prices, the GTA has had the best home sales results for the month of July since 2021. There is no doubt that sales activity is starting to build up, housing inventory is shrinking, and more buyers are out shopping.

Recently, more households are finding affordable housing options made possible by lower home prices and lower borrowing costs. Compared to the same time last year, average sales prices are down 5.5% and interest rates are down about 1.75%. As a result, more households see the value in purchasing amidst the current market conditions, contributing to heightened sales figures in June and July. A 10.9% rise in home sales was recorded between this July and July 2024 - a significant jump that hasn't been seen in years. New listings have continued to trend downward for the second month in a row, further contributing to the tighter market conditions.

However, more financial relief is still needed for most homeowners and would-be homeowners. Considering our current economic conditions and cost of living, further reductions to interest rates are needed to make home ownership more affordable and to stimulate more buyer demand. With international trade barriers and continued uncertainty, more needs to be done to promote the growth of Canada's domestic economy. Interest rate relief would help push home sales further, positively impacting spin-off industries and regional economies.

Despite the recent changes to supply and demand in the real estate market, pricing is still slowly trending downwards. Even with the increasing sales and tightening inventory, the amount of active listings is still unusually high, causing negative growth for sales prices in most market areas. However, prices haven't decreased at the same rate this summer compared to earlier this year, indicating that pricing may soon begin to level off.

As always, don't hesitate to reach out to me to see how these new changes will impact your real estate plans.

To see how prices have been affected in your area, please click the link below to get access to TRREB's July Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos.

https://trreb.ca/wp-content/files/market-stats/market-watch/mw2507.pdf

If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below.

https://calendly.com/davidrizzuto/consultation-call?month=2025-08

Market Momentum Returns: Real Estate Activity Growing This Summer | July 2025

by David Rizzuto

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