Written by Miguel Fernandez Morales | Published on October 10, 2025
The Greater Toronto Area housing market picked up pace in September, bringing renewed confidence to both buyers and sellers. With mortgage costs easing and more choices on the market, the fall season is shaping up to be an interesting one.
Sales on the Upswing
GTA REALTORS® reported 5,592 home sales in September—an 8.5% increase compared to the same month last year. Buyers are clearly responding to lower monthly mortgage payments, but they're also negotiating aggressively. The average selling price came in at $1,059,377, down 4.7% year-over-year.
This balance of rising sales and softer prices highlights an important shift: buyers are back, but they're still cautious.
Interest Rates Giving Buyers Breathing Room
The big story this fall? The Bank of Canada's September rate cut. With borrowing costs reduced, more households are now able to afford homes that meet their needs.
As TRREB President Elechia Barry-Sproule explained: "Lower borrowing costs are welcome news for homebuyers. More affordable mortgage payments not only help families but also fuel the broader economy through housing-related spending."
Listings vs. Sales: Market Dynamics
- New Listings: 19,260 in September (up 4% year-over-year)
- Month-to-Month: Sales ticked higher than August, while new listings dipped
This suggests certain segments of the market may be tightening. If this trend continues, competition among buyers could return sooner than expected.
Key Takeaways
- Sales are up: 8.5% higher than last year
- Prices remain negotiable: Average price down 4.7%
- Lower rates = more buyers re-entering the market
- Listings tightening: Competition may heat up again if supply slows
What This Means for You
Buyers: You have more room to negotiate today, but conditions may shift if listings keep tightening. Sellers: Serious buyers are back in the market, especially those motivated by lower mortgage rates. Investors: The softer average price and steady rental demand may create opportunities to acquire at better entry points.
If you're considering buying, selling, or investing this fall, let's talk. Contact me at 647-985-0348 or miguel@yourfamilyrealtor.ca