Good News for Homebuyers: GTA Market Shows Signs of Strength

Interest Rate Cuts Boost Buyer Confidence

September’s interest rate cut was welcome news for homebuyers across the Greater Toronto Area. With borrowing costs now more manageable, more households could afford monthly mortgage payments on homes that met their needs. TRREB reported 5,592 home sales in September, up 8.5% year-over-year. The average selling price came in at $1,059,377, slightly lower than last year but stabilizing compared to previous months.

Year-to-date, the GTA’s average home price sits at $1,077,602, only 3.8% below the start of the year — a clear sign that the major price drops some were anticipating have not materialized. As interest rates continue to ease, buyer demand is expected to rise, tightening market conditions and putting upward pressure on prices once again.

Market Conditions Show Signs of Strength

According to TRREB, new listings were up 4% year-over-year, totaling 19,260, while active listings decreased compared to August. This indicates that more buyers are re-entering the market and available inventory is being absorbed faster. On a seasonally adjusted basis, sales were up month-over-month, showing renewed momentum in the GTA housing market.

The MLS® Home Price Index Composite Benchmark was down 5.5% year-over-year, while the average sale-to-list price ratio across the GTA held steady at 98%, underscoring that correctly priced homes are still selling close to asking.

Economic Factors at Play

Two major forces have shaped this year’s real estate landscape — interest rates and tariffs. While borrowing costs have eased, concerns remain about trade-related economic pressures. However, continued home purchases drive broader economic activity through renovation spending, furniture sales, and other housing-related industries. As economic confidence improves, the GTA real estate market is expected to regain its usual pace.

A Strategic Time to Upgrade

For homeowners thinking about upgrading, the current environment offers excellent opportunities. Consider this: if prices rise by 10%, a $1,000,000 home gains $100,000 in value — but a $2,000,000 home gains $200,000. Selling and moving up now could position you to benefit from future appreciation.

Key GTA Market Stats (September 2025)

• Sales: 5,592 (+8.5% year-over-year)

• Average Price: $1,059,377 (-4.7% year-over-year)

• New Listings: 19,260 (+4%)

• Average List-to-Sale Price: 98%

• Average Days on Market: 33

Final Thoughts

It’s becoming clear that the market is stabilizing. With more favourable lending conditions and improving confidence, the GTA housing market is on track for a more balanced and active fall season.

If you’ve been considering upgrading your home or purchasing an investment property, now is an excellent time to explore your options. I’d be happy to share insights tailored to your goals and help you make an informed move.

Your Friends in Real Estate

Maria Patino & Giuseppe Strazzeri