Average Toronto home prices plunged by over $132,000 in 2025

Toronto's home prices declined more in 2025 than in any other city in Canada.

A new report from Zoocasa punctuates a year of declining average home prices in the Greater Toronto Area (GTA), which dropped in value by a staggering $132,500 since the start of the year. 

The report collected price data from the Canadian Real Estate Association (CREA) for 16 major Canadian markets – including Toronto, Hamilton-Burlington, Kitchener-Waterloo – and compared prices from January 2025 to October 2025. 

Looking at Toronto specifically, prices fell 12.16 per cent to $956,800 from $1,089,300 at the start of the year.

Of the 16 markets studied, only five cities, including Montreal and Winnipeg, saw significant growth rates. 

Zoocasa

There are several factors behind this significant drop in Toronto: higher borrowing costs, fewer first-time homebuyers switching from renting, and overall demand. 

It's fair to say that 2025 hasn't been a great year for Toronto real estate, with home prices taking a beating throughout the year, along with condos and rental units seeing significant price declines.

In the end, it's still the buyers who end up with more choice and more negotiating power heading into 2026 — that is, until more rate cuts push prices back up.