Rising interest rates, stubborn inflation, U.S. tariffs, and economic uncertainty have combined to cool demand, flood the market with listings, and drive prices downward.
And unlike most of Canada, where housing values are holding steady, Toronto has become one of just three major hubs (alongside Vancouver and Hamilton) where home prices are slipping.
How Much Have Prices Really Dropped?
- Toronto Regional Real Estate Board (TRREB): The average home price across the GTA is down 5.2% year-over-year, representing more than $50,000 in savings for buyers compared to last summer.
- Wahi House Price Index: Prices in Toronto fell 4% between August 2024 and August 2025, while markets like Quebec City surged 12% in the same period.
- Canadian Real Estate Association (CREA): Nationally, home sales climbed 1.9% year-over-year, but Toronto’s slump dragged down overall averages.
That means while most of Canada’s housing market is flat or climbing, Toronto is now an outlier — and a market where buyers suddenly have leverage.
Why the Drop?
- Inventory Surge: Condo listings in the GTA have hit record highs, with tens of thousands of units on the market.
- Sluggish Sales: Homes are taking longer to sell, with fewer bidding wars and more negotiations.
- Affordability Crunch: High borrowing costs and living expenses are keeping many buyers on the sidelines.
What This Means for Buyers and Investors
For everyday buyers, the math is simple: the same home is now $40,000–$50,000 cheaper than last year. For investors, Toronto’s downturn may be a rare window of opportunity. Historically, every correction in the GTA has paved the way for the next rebound — and those who buy in the dip are often best positioned for long-term gains.
Why Partner with Lendworth Now?
At Lendworth Canada, we specialize in helping clients navigate exactly these kinds of market shifts. Whether through equity-backed lending solutions or access to investment vehicles like the Lendworth Mortgage Investment Corporation (MIC), we provide opportunities to benefit from today’s lower valuations while preparing for tomorrow’s recovery.
👉 With prices softening and interest rate cuts on the horizon, Toronto’s real estate slump could be the start of the next buying cycle. At Lendworth, we make sure our investors and borrowers are ready to act when the market turns.