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GTA Housing Market Softens in October: Opportunity Returns for Buyers and Investors

The Greater Toronto Area (GTA) housing market cooled further in October, as sales declined and listings rose modestly — creating more balanced conditions and renewed opportunity for qualified buyers and investors.

According to the Toronto Regional Real Estate Board (TRREB), 6,138 homes sold in October 2025, marking a 9.5% decrease from the same month last year. Meanwhile, new listings reached 16,069, up 2.7% year-over-year, offering more choice for those still active in the market.

Average home prices continued to ease, with the MLS® Home Price Index Composite Benchmark down 5% annually, and the average selling price falling 7.2% to $1,054,372. On a month-over-month basis, both sales and new listings saw a seasonal slowdown compared to September.

Affordability Slowly Improves

While many prospective buyers remain cautious amid economic uncertainty, lower mortgage rates and softer prices have begun to improve affordability. “Buyers confident in their employment and long-term outlook are now benefitting from more negotiable market conditions,” said TRREB President Elechia Barry-Sproule.

The monthly mortgage payment for an average-priced home has continued to trend downward, supported by both lower borrowing costs and reduced selling prices. As economic conditions stabilize — including clarity around trade and interest rate policy — TRREB expects to see sales volumes recover.

A Critical Moment for Housing Supply

TRREB CEO John DiMichele emphasized that housing remains “essential economic infrastructure,” calling for policy innovation, zoning reform, and private-sector investment to boost supply. With population growth accelerating across the GTA, the need for new housing — from purpose-built rentals to ownership homes — has never been greater.

Lendworth’s Perspective

At Lendworth, we view this environment as one of measured opportunity. Lower valuations and rising inventory are creating favourable entry points for both end-users and investors. As prices and borrowing costs recalibrate, equity-based financing solutions — such as home equity loans, bridge mortgages, and private first/second mortgages — can help buyers and property owners act decisively while others wait on the sidelines.

Our team continues to support borrowers and investors seeking fast, flexible funding and reliable yields in a shifting market.

📞 Connect with Lendworth to explore strategic mortgage and investment solutions designed for today’s evolving real estate cycle.

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