Toronto real estate prices plummeting and here's what the average home costs now

Toronto's turbulent real estate market has been accelerating nose-first into the ground for months, and while home sales in the region are actually showing signs of a rebound in the second half of the year, there is still a long road ahead to recovery.

However, despite the doom and gloom, the latest monthly figures from the Toronto Regional Real Estate Board (TRREB) offer some hope for buyers and sellers in the Greater Toronto Area (GTA).

September home sales in the GTA spiked year-over-year, with declines in average home prices and increased flexibility in negotiations, as sellers are accepting offers well below the asking price, helping to lure cost-conscious buyers out of hibernation. This is thanks in part to the runaway supply of unsold units.

A few factors are driving the 5,592 home sales reported by TRREB in September –  a noticeable 8.5 per cent bump over the same month last year. One factor cited by TRREB President Elechia Barry-Sproule is the recent Bank of Canada interest rate cut, which Barry-Sproule says "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 Barry-Sproule.

Home sales also increased month-over-month from August 2025 on a seasonally adjusted basis, suggesting that these numbers may be more than just a flash in the pan.

But, while sales are indeed improving, the supply of unsold homes is only growing. A whopping 19,260 new listings were logged by TRREB last month, jumping four per cent over the previous September. However, TRREB notes that new listings did indeed fall month-over-month, which could indicate a tightening of market conditions.

In terms of affordability, GTA housing still has a long way to go. It will now cost an average of $1,059,377 to buy a home in the GTA, a decline of 4.7 per cent over Sept. 2024.

TRREB Chief Information Officer Jason Mercer warns that "While home sales have improved over the past year, they still remain below normal levels relative to the number of households in the GTA."

Mercer suggests that "Two more 25-basis-point interest rate cuts by the Bank of Canada would see monthly mortgage payments move more in line with homebuyers' average incomes, further spurring home sales and related economic activity."