Written by Miguel Fernandez Morales | Published on September 26, 2025
Market Still Cooling Off
Home prices in the GTA slid again in August, reaching a four-year low: the benchmark price is now $969,700, reflecting a 5.2% drop year-over-year—the lowest we've seen since early 2021. Meanwhile, sellers are flooding the market: inventory surged to record highs, giving buyers more options and pricing power.
The Market Hasn't Bottomed Yet
August brought a surprise: home sales dipped for the first time in five months, and prices continued to slide—despite hopes that rate cuts would spark a frenzy. Buyers are still out there, but affordability remains a challenge.
Prices Take Another Hit
We're seeing a noticeable drop—average prices are down about 5% year-over-year, with detached homes bearing the brunt at a -7% hit. In fact, prices are sitting roughly 24% lower than their peak back in early 2022. Sellers, be ready for tougher times ahead.
Sellers Are Listing, Buyers Are Waiting
Inventory is through the roof, with record-high listings flooding the market. That means more choice—and more negotiating power—for buyers. Homes are also taking longer to sell, so pricing right is essential.
Down the Road: Recovery's on the Horizon, But Slow
Looking ahead, forecasts paint a cautious comeback—sales and prices might inch up in 2026, but affordability challenges could hold things back in hot markets like the GTA.
Bottom Line: What It Means for You
Buyers: Nice window to shop—soft prices, plenty to choose from, and room to negotiate. Many buyers are taking advantage of the situation now. If you are planning to buy, don't wait until more buyers come on the market and you will have to compete with them.
Sellers: Setting realistic expectations and pricing smart matters more than ever. Or you won't sell and end up reducing the price even more.
If you are planning to sell and buy, take into account that you will sell low and buy low as well, so if you are going for a more expensive house, you might be saving thousands of dollars.
Contact me at 647-985-0348 or miguel@yourfamilyrealtor.ca