Toronto's housing market has completely fallen off a cliff

The new norm in Toronto real estate is a jarring departure from the market of the last decade-plus, with home sales — and, as a result, construction activity — plunging as listings build up and sit on the market for weeks (that is if they aren't just cancelled altogether in the absence of interested buyers).

Each month, the numbers from the Toronto Regional Real Estate Board (TRREB) remind stakeholders that there is little they can do to stop what has now been a months-long downward trend in and around the city, which just a few years ago was one of the hottest and most overvalued places for property in the world.

The latest report from the organization, published Friday, outlines continuing declines of both the average price and the number of sales across the area year-over-year while new listings, overall active listings and average days on the market surge: a sh*tstorm of bad news for anyone trying to sell a house or condo in and around Toronto.

"Average selling prices and borrowing costs remain lower than last year's levels. However, despite some month-over-month momentum, many would-be homebuyers remained on the sidelines due to economic uncertainty," TRREB writes.

Though its experts insist that there are some signs of recovery compared to even bleaker months in recent memory, they do note that the abundance of properties for sale has been hard on sellers, who are having to sell for less than they'd hoped and perhaps for even less than they paid in the first place.

And still, even a 5.4 per cent reduction in the selling price of the typical home in the region (versus last June) hasn't been enough to spur more purchases, as sales have dropped 2.4 per cent from an already low point this time last year. But, amid a recession and cost of living crisis, it is understandable how an average price tag of $1,101,691 is still too much for many to swallow.

Steady grind down for GTA real estate:

GTA June home sales down slightly (2.4%)

Prices down: -5.4%
Supply up slightly - +7.7%
Inventory (active listings) up a whopping 30.8%
Properties taking longer to sell - DOM up 30-40%

No surprises here. Steady as she goes. pic.twitter.com/A3USrUhq89

— Daniel Foch (@daniel_foch) July 4, 2025

Alongside these figures, TRREB reported a 7.7 per cent year-over-year increase in new listings over the course of last month, along with a staggering 40 per cent rise in the length of time properties are up on the market, and a 30.8 per cent increase in overall listings over the same time period.

This means the region now has the most active residential real estate listings ever on record.

While this is a great time for buyers (of which, as mentioned, there are so few), there are a few things that TRREB's execs believe could really help revive the sector.

"A firm trade deal with the U.S. accompanied by an end to cross-border sabre rattling would go a long way to alleviating a weakened economy and improving consumer confidence. On top of this, two additional interest rate cuts would make monthly mortgage payments more comfortable for average GTA households and provide some support for selling prices," the report reads.

"It is also important to highlight that housing is not just impacted by economic and financial issues: Canadian residents, both homeowners and renters alike, are increasingly having to deal with the nightmare of violent home invasions and carjackings... [so] TRREB is encouraged by the recent federal announcement to table a crime bill this fall."