September brought a mixed bag for the Greater Toronto Area (GTA) housing market, hinting at a shift in focus for many buyers. While more homes changed hands compared to last year, the overall trend points to “Volume Over Value”—meaning more sales activity, but not necessarily higher price tags.
Let’s break down what happened:
More Homes Selling, Thanks to Lower Rates
Good news for those looking to buy! In September 2025, a total of 5,592 homes were sold across the GTA through TRREB’s MLS® System. That’s a healthy 8.5% increase compared to September 2024. What’s driving this pickup? A key factor was the Bank of Canada’s September interest rate cut.
As Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule noted, “The Bank of Canada’s September interest rate cut was welcome news for homebuyers. With lower borrowing costs, more households are now able to afford monthly mortgage payments on a home that meets their needs.” This means a little more breathing room in monthly budgets, encouraging more people to step into the market.
Buyers Get the Upper Hand on Prices
While sales volume was up, buyers also took advantage of something else: more choices. With 19,260 new listings hitting the market (up 4% year-over-year), there was plenty to pick from. This “substantial choice” allowed buyers to negotiate, pushing the average selling price downwards.
So, while more homes sold, they weren’t necessarily selling for more money. This is a clear indicator of a market where buyers have a bit more leverage.
The 416 vs. 905 Split: A Tale of Two Regions
Looking at the nitty-gritty, we see an interesting split between Toronto proper (the 416 area code) and the surrounding regions (the 905 area codes). In general, sales volume for all types of homes was lower in the 416 compared to the 905.
However, there was one notable exception: the condo market. It seems condos in the city centre continued to see strong activity, bucking the trend of lower sales volume in the 416 for other housing types. This suggests a continued demand for urban living, particularly in the more accessible condo segment.
What Does This Mean for You?
- For Buyers: This could be a good time to enter the market. Lower interest rates make borrowing more affordable, and increased inventory gives you more options and potentially more room to negotiate on price.
- For Sellers: While your home might sell, you might need to be realistic about your asking price. The market is showing more sensitivity to price, especially with more homes available for sale.
Overall, September painted a picture of a more active, yet more balanced, housing market in the GTA. Buyers are making moves, but they’re doing so carefully, focusing on affordability and value.
Disclaimer: This blog post is based on TRREB’s September 2025 data and insights and is intended for general informational purposes only. It does not constitute financial or real estate advice. Always consult with a qualified professional before making any real estate decisions.