The Greater Toronto Area housing market showed renewed strength in September, as buyers appeared more motivated to re-engage. Elevated inventory levels and moderating price trends created favourable conditions that supported demand across all major property types.
Average home values rose 3.6 per cent month over month, bringing the region’s average sales price to $1,059,377. Inventory closed the month with 29,394 active listings, which is 72 per cent above the ten year historical average. After several months of uneven sales activity, September delivered gains on both a monthly and yearly basis, with sales up 7.3 per cent compared with August and 12 per cent compared with September 2024.
A recently released Royal LePage survey found that 13 per cent of Canadian adults are working towards their first residential property purchase within the next two years, with most planning to buy within 12 to 24 months.
“Interest rates are trending lower and prices have stabilized or even softened in some markets, creating favourable conditions for long-awaited entry into home ownership, especially in costly cities like Toronto and Vancouver. Yet, hesitation remains,” said Phil Soper, president and CEO, Royal LePage. “For some, ongoing economic uncertainty, particularly surrounding trade relations with the United States, is prompting them to hold off until there are signs of stability. Buying a home is the biggest financial decision most people will ever make, and first-time buyers naturally want to do so with as much certainty as possible.”
“Others are choosing to wait in hopes of securing a better deal. With the potential for further rate cuts from the Bank of Canada this year, those in no rush to purchase now are taking a methodical approach, building up their savings and deliberately planning their entry into the market when they feel the timing is best for them.”
The detached market gained back the losses that occurred in August. The September average sales price reached $1,359,030, representing a 3.5 per cent monthly increase. Inventory rose to 13,684, an increase of 9 per cent compared with August and 22 per cent compared with last year. Detached sales also improved, climbing 10 per cent monthly to 2,661 transactions.
The condo market also experienced gains in both price and activity. The average sales price across the GTA rose 2 per cent on a monthly basis to $655,231. Sales increased by 5 per cent compared with August, with 1,437 properties put under contract. Inventory remained elevated at 9,233 active listings. Current condo supply is 74 per cent above the ten year historical monthly average, while sales remain 25 per cent below long-term norms.
The semi-detached segment recorded a 3.6 per cent increase in average sales price, reaching $1,015,543 in September. Sales climbed 14.7 per cent monthly, with 506 properties changing hands. Inventory, however, remains near all-time highs with 1,659 active listings.
Townhomes across the GTA sold for an average of $947,928 in September, essentially flat on a monthly basis. Inventory rose 12 per cent compared with August, reaching 2,224 active listings. Sales totalled 517, which represents a 4 per cent increase compared with September 2024.
“The Bank of Canada’s September interest rate cut was welcome news for homebuyers. With lower borrowing costs, more households are now able to afford monthly mortgage payments on a home that meets their needs. Increased home purchases will also stimulate the economy through housing-related spin-off spending, helping to offset the impact of ongoing trade challenges,” said Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule.
Looking ahead, the housing market across the Greater Toronto Area continues to balance on the edge of opportunity and caution. With interest rates easing and inventory levels historically elevated, buyers are finding more choice and negotiating power. At the same time, sales activity remains below long-term averages, highlighting that market confidence has not fully returned. Whether momentum builds through the fall will depend largely on the pace of additional rate cuts and how quickly buyers feel comfortable stepping off the sidelines.
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