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GTA Home Sales Edge Higher, But Prices Keep Sliding in August 2025

Toronto’s housing market is caught in a tug-of-war: sales are creeping up, but prices keep slipping as inventory floods the market.

According to the Toronto Regional Real Estate Board (TRREB), 5,211 home sales were recorded in August 2025, a 2.3% increase compared to last year. But buyers had plenty more to choose from, with 14,038 new listings hitting the MLS—up 9.4% year-over-year.

📉 Prices under pressure

  • The MLS® Home Price Index was down 5.2% year-over-year.
  • The average selling price sat at $1,022,143, also 5.2% lower than August 2024.
  • Month-over-month, both the HPI and average prices stayed flat compared to July—showing no signs of a rebound yet.

🏠 Buyers have leverage

With listings rising faster than sales, buyers continue to benefit from a well-supplied market. But affordability remains a stumbling block. TRREB’s Jason Mercer notes that even with lower borrowing costs and prices, “a household earning the average income in the GTA is still finding it challenging to afford the monthly mortgage payment.”

📊 The bigger picture

  • TRREB President Elechia Barry-Sproule highlighted that further Bank of Canada rate cuts could unlock affordability and stimulate demand.
  • CEO John DiMichele stressed the importance of infrastructure and housing development for Canada’s long-term economic health—but in the short term, housing remains a key driver of recovery.

What this means for buyers & investors

Toronto real estate is in transition: more listings, modestly higher sales, and prices negotiating downward. For buyers, this is the first time in years where choice is abundant. For investors, market corrections often create entry points that are hard to spot in hindsight.

At Lendworth Canada, we specialize in turning uncertain markets into opportunities—through asset-backed lending and real estate investment strategies designed to perform whether prices are rising or falling.

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