With more homes hitting the market and prices softening across the Greater Toronto Area (GTA), buyers finally have choices—and leverage.
Toronto Home Prices Are Slipping
According to the Toronto Regional Real Estate Board (TRREB), the average selling price across the GTA fell 5.2% year-over-year in August to $1,022,143. Detached homes saw the steepest decline, with prices dropping 7.5%.
- Detached homes (GTA average): $1,312,240
- Detached homes (City of Toronto): $1,524,066
- Semi-detached homes: $980,102 (-4.2%)
- Townhouses: $860,178 (-3.8%)
- Condos: $642,195 (-5.0%)
While affordability is still a relative term in Toronto, the correction is creating opportunities for patient buyers.
Inventory Surge Shifts Power to Buyers
New listings surged 9.4% year-over-year in August, with more than 14,000 homes hitting the market. Total active listings now sit at 27,495—a massive 22.4% increase from last year.
That means buyers no longer need to compromise or overpay. Instead, they can negotiate for price reductions, financing conditions, and even extras like home inspections or repairs—things sellers rarely entertained just a few years ago.
As one GTA broker explained:
“Sellers are now pricing homes realistically, leaving room for negotiation instead of sparking bidding wars.”
Condos: The Weakest Link
Condominiums remain the softest segment, with sales down 4.9% year-over-year and average prices sliding 5%.
“Cookie-cutter” investor units are struggling to sell, while unique condos with larger layouts or standout features are still attracting end-users. In fact, condos and townhomes now make up 68% of Toronto’s active listings, making it one of the best entry points for first-time buyers.
Why Affordability Is Still a Challenge
Despite lower prices, TRREB’s chief information officer Jason Mercer notes:
“A household earning the average income in the GTA is still finding it challenging to afford the monthly mortgage payment on an average-priced home.”
With the Bank of Canada holding rates at 2.75% since April, many are watching the September 17th policy announcement. A rate cut could improve affordability slightly—but economic uncertainty may keep some buyers cautious.
What to Expect This Fall
Both buyers and sellers are eyeing the fall market for clues on where prices will head. Key trends to watch:
- More inventory: Expect listings to rise further as summer holdouts re-enter the market.
- Flat pricing: Analysts predict prices will stay steady, with modest declines in some segments.
- Buyers vs. investors: Right now, most activity is from end-users, but investors could return if conditions stabilize.
Lendworth Insight: A Market of Opportunities
At Lendworth, we see this as a strategic window for buyers and investors. With prices softening and sellers more open to negotiation, those who act now can secure value before the next cycle of growth.
For homeowners, this is also a time to evaluate refinancing options or equity-based solutions, especially if you’re upgrading, downsizing, or investing in income properties.
Final Word
Toronto’s real estate market is in transition. The balance of power has shifted, giving buyers long-overdue leverage. Whether you’re purchasing your first condo, upgrading to a detached home, or exploring investment opportunities, the coming months could prove to be the most favourable in years.
👉 Thinking about buying, refinancing, or investing? Connect with Lendworth today for tailored mortgage and investment solutions designed for today’s market realities.