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Market Momentum Builds as GTA Home Sales Rise & Buyers Regain Confidence

More homebuyers are seeking to take advantage of more affordable monthly mortgage payments and have responded to the substantial choice in the marketplace by negotiating average selling prices downward. The anticipated interest rate cut was welcome news for homebuyers, who are now more confident that another rate cut will come by year-end. With lower borrowing costs

“more households can afford monthly mortgage payments on homes that meet their needs.”

While home sales have improved compared to last year, they still remain below typical levels relative to the number of GTA households. Sales are trending to end the year approximately 11% lower than 2025. Given ongoing employment challenges and household uncertainty, it is highly likely that another rate cut will be needed — one that could spur confidence and encourage buyers currently on the sidelines to enter the market.

A further 25-basis-point cut by the Bank of Canada this year could further stimulate home sales and related economic activity. It has been widely reported that each real estate transaction injects more than $80,000 into the economy through housing-related spin-off spending, helping offset the impact of ongoing trade challenges.

Rental Market Remains Strong

The condo rental market continues to stabilize, with demand outpacing supply. Lease transactions rose faster than listings, which were up just 4%. Active listings dropped 7%, and average rents hit $2,668 — still down from previous years, but five-year growth remains positive at 3.6%.

Condo Resale Market Under Pressure

Resale condos are firmly in buyer’s market territory, with sales-to-new listings at 33% and months of supply at 6.7. Prices fell 5% year-over-year to $642,195 — the lowest since January 2021. However, long-term price growth remains solid at 5.6% annually.

Presale prices are becoming more attractive, with the premium narrowing to 18%. As completions peak and future supply tightens, rent growth may accelerate. A further 5–7% price adjustment and additional rate cuts could revive investor interest and shift focus to end-users.

Property Trends

• Townhouses: Sales up 39.2% YoY in Toronto’s core—space-conscious buyers are flocking in.

• Turnkey Homes: Modern, move-in-ready listings are selling fast; dated homes are lagging.

• Condos: Prices dipped, but inventory remains high—buyers have time and leverage

Looking Ahead

As 2025 winds down, the GTA housing market shows signs of stabilizing. Lower rates, steady employment, and renewed buyer confidence could help sales rebound toward historical norms in 2026.

Living steps away from a subway or GO train station is more than a convenience—it's a lifestyle upgrade and an investment in your future. Whether you're commuting, renting, or hoping for long-term property appreciation, these transit-adjacent homes offer unmatched value. Here's how to navigate this premium real estate effectively.

1. Transit Proximity Always Commands a Premium

• Homes within walking distance to transit stations consistently fetch higher prices—especially near new infrastructure like the Eglinton Crosstown LRT and Ontario Line. Some corridors have seen value jumps of up to 15–25%.

• A prime example: Midtown TTC stops such as York Mills can cost nearly $4 million for detached homes, whereas nearby areas like Kennedy offer significantly lower prices for condos.

2. GO Station Living: Value Meets Commuter Ease

• GO-adjacent homes offer both affordability and premium location—Barrie South and East Gwillimbury provide entry-level options with strong upside potential.

• For tighter budgets, homes near West Harbour in Hamilton go for an average of $365K with a 71-minute commute, while Port Credit remains at the high-end at around $1.36M.

3. East Toronto Offers Hidden Value Near TTC

• East-end neighborhoods like Warden, Kennedy, and Victoria Park offer the most affordable access to TTC lines, with condos priced from $480K and houses just north of $1M.

• These areas give you transit connectivity without swallowing your budget—making them smart picks for both buyers and investors.

4. Weigh Convenience Against Cost Carefully

• While transit accessibility offers tremendous value, it comes at a premium. That said, choosing slightly farther—like along subway or GO lines outside downtown—can offer a balance of price and convenience.

• Example: Townhouses near Don Mills may average $835K, but move a few stops and prices drop by nearly 27%.

Final Summary

Homes steps from subway or GO stations deliver unmatched accessibility, future-oriented value, and lifestyle convenience. While pricing varies considerably—from budget-friendly eastern corridors to ultra-prime Midtown addresses—the key is balancing cost with long-term gain. With smart location choices, you can enjoy both transit ease and investment potential.

Frequently Asked Questions

Are home prices dropping in Toronto?
Moderate declines are seen throughout 2025, with home prices down roughly 5% year-over-year. Inventory remains high, giving buyers a bit more negotiating power.

Are there homes on Toronto Island?
Yes—the Toronto Islands do offer a small selection of homes, but availability is limited and often comes with unique access and zoning considerations.

Is it a good time to buy a house in Toronto?
For well-financed, patient buyers, current conditions are favorable: prices have softened, and inventory remains ample. It's a good time if you’re strategic.

How many homes are vacant in Toronto?
The city's Vacant Home Tax program estimates about 1–1.2% of residential properties are vacant—roughly 8,700 in 2023. The tax is rising to 3% to encourage occupancy.

How many condos are sitting empty in Toronto?
Toronto has nearly 65,000 empty condo units, and investment condos carry vacancy rates ranging from 5.5% to 10.1% depending on age. This highlights the supply imbalance in the market.

Walking into an open house can be overwhelming—especially with thousands of details racing through your mind. Should you ask about roof age? Is the staging hiding issues? Don’t worry—we’ve collected the most down-to-earth, tried-and-tested strategies to help you walk in with confidence and walk out with clarity.

1. Pack the Right Essentials

Bring the tools that help you make informed decisions, not just take pretty pictures.

• Tape measure to check room dimensions and furniture fit.

• Flashlight to spot water stains, mold, or hidden issues in basements and closets.

• Notepad, camera/phone (with permission) to record observations and impressions.

2. Look Beyond the Staging

Beautiful decor can mesmerize—but don’t let it blind you to the essential:

• Open every door, look behind drapes, and peek inside the pantry, basement, and closets.

• Note any odd-sounding floors, drafts, or signs of water exposure. These are red flags, not design flaws.

3. Ask Smart, Stay Reserved

An open house is your chance to gather intel—without giving away your game.

• Ask about the home’s age, inspection reports, past problems or repairs, and reasons for selling.

• But don’t mention your budget or strong liking—it’s strategic to stay neutral.

4. Respect the Space & People

Behavior speaks loud—even when you’re just visiting.

• Be polite: sign in if needed, wait your turn, and stay respectful of the seller’s home.

• Always ask before snapping photos or filming.

• Keep feedback non-judgmental—save opinions for later.

5. Explore the Neighborhood—Snap or No Snap

The address matters as much as the house.

• Take a walk or drive the area to gauge traffic, nearby amenities, and layout.

• Pay attention to fellow attendees—high turnout might mean competition, fewer visitors could give you an upper hand.

Final Summary

Before you step into an open house, come prepared with tools and questions, look past the staging, engage thoughtfully, and observe the surroundings. This isn't just about falling for the right home—it’s about making an informed choice that fits your future.

Frequently Asked Questions

Q: What should I bring to an open house?
Bring essentials like a tape measure, flashlight, notepad, and camera—and always ask the agent before taking photos.

Q: How do I identify red flags during an open house?
Listen for creaks, test windows and faucets, and scan for water stains or mold—well before entering the home.

Q: Is it okay to ask lots of questions at an open house?
Yes! Smart questions about inspections, repairs, and home history show diligence—but avoid revealing your budget or emotional attachment.

Q: Can I attend open houses just to look, even if I'm not buying?
Absolutely. Most agents expect curious visitors. Just be respectful and honest if asked.

Q: Should I take notes or photos, and how?
Use a notepad to jot down observations. If you'd like photos or video, always ask for permission first—respect is key.