Toronto Home Prices Down 5.4% in June 2025 Amid Economic Uncertainty – Market Watch
Toronto’s housing market showed signs of cautious recovery in June 2025 according to Toronto Regional Real Estate Board(TRREB), marked by slightly improved affordability. Despite these promising signs, market activity remains subdued due to ongoing economic uncertainty.
Sales Activity and Market Dynamics
Greater Toronto Area (GTA) REALTORS® reported 6,243 home sales in June 2025, a modest decline of 2.4% compared to June 2024. However, monthly sales increased compared to May 2025, reflecting a seasonal uptick. New listings rose by 7.7% year-over-year to 19,839 but declined compared to May, suggesting a tightening market scenario.
Home Prices and Affordability
The average home price in June 2025 decreased by 5.4% year-over-year to $1,101,691. The MLS® Home Price Index (HPI) Composite Benchmark also declined by 5.5%, highlighting lower price points across different home segments compared to the previous year.
Economic Factors Influencing the Market
Economic uncertainty remains a barrier, with buyers waiting for more clarity regarding Canada-U.S. trade relations and potential interest rate cuts. The Bank of Canada has indicated potential rate cuts later this year, which could significantly improve buyer confidence and stimulate market activity.
Detailed Price Insights by Property Type
- Detached homes: Down 6.4% year-over-year
- Semi-detached homes: Down 13.0% year-over-year
- Townhouses: Down 5.7% year-over-year
- Condo apartments: Down 2.3% year-over-year
Key Takeaways:
- Sales declined modestly year-over-year but improved month-over-month.
- Average home prices and borrowing costs remain lower than last year, increasing affordability.
- Economic confidence is critical for market recovery.
- Inventory tightening slightly as sales increase faster than new listings month-over-month.
What This Means for Buyers and Sellers
For buyers, the market continues to offer opportunities with lower prices and borrowing costs, allowing for increased negotiating power. Sellers should remain realistic with pricing and patient, given current economic uncertainties.
Please watch closely for the Bank of Canada’s rate announcement on July 30th.
Summary of the Toronto Real Estate Market June 2025:
- Sales: 6,243 homes (down 2.4% YoY)
- Average Price: $1,101,691 (down 5.4% YoY)
- New Listings: 19,839 (up 7.7% YoY)
- Market Condition: Slightly tightening but affordability improving
- Economic Outlook: Dependent on trade stability and interest rate changes
With cautious optimism, both buyers and sellers should monitor economic indicators closely for shifts in market conditions.
📩 Curious how these trends affect your next move?? Please drop an email to: opel@opelou.com Let’s connect and talk about your strategy.
🖋️ Opel Ou, Real Estate Broker, FRI, SRES
Real Estate made clear, one smart move at a time!
#TorontoRealEstate #GTAHomes #HousingMarket2025 #RealEstateTrends #HomeBuying #TorontoHomes #GTARealEstate #AffordableHousing #MarketUpdate #RealEstateNews #PropTechRealty #RealEstateBroker #Realtor #FRI #SRES #OpelOu
Source: TRREB – Market Watch | May 2025 Market Watch Blog Post
June 2025 – Market Statistics – Quick Overview
Residential Statistics
Commercial Statistics(Q3 2024)
Condominium Sales Statistics(Q1 2025)
Condominium Rental Statistics(Q1 2025)
* **In conjunction with TRREB’s redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years**
Source: Housing Market Chart Archive – The Toronto Regional Real Estate Board (TRREB)