A for sale sign is displayed outside a home in Toronto, Ont., on Dec. 13, 2021. Carlos Osorio/Reuters
The Greater Toronto Area housing market declined in July, ending a four-month streak of year-over-year growth.
The region recorded 5,995 home transactions last month, reflecting a decrease of 0.9 percent compared to July 2025, but there was a 3.2 percent rise in sales from June when adjusted for seasonal factors, according to data from the Toronto Regional Real Estate Board.
The average selling price fell by 4.5 percent compared to the previous year, reaching $1,003,956, while the composite benchmark price, intended to reflect the typical home, decreased by 4.6 percent, the board said in its recently released report.
There were also 14,484 new listings on the market in July, a 17.8 percent dip from last year.
The figures suggest that active homebuyers faced more competition from other potential purchasers, board president Daniel Steinfeld said in the report.
“With sales accounting for a larger share of listings, buyers may find there is less room to negotiate moving forward,” Steinfeld said. “If current trends continue, home prices could start to level off compared to last year.”
He noted that many potential homebuyers are postponing their purchases until they have greater confidence in the market and the overall economy. This includes gaining more clarity on tariffs, inflation, and borrowing costs, he said.
Home Sales
Meanwhile, inventory decreased by 12.1 percent, with a total of 26,098 active listings in the Greater Toronto Area.
The City of Toronto recorded 2,242 sales last month, reflecting an increase of 2.4 percent compared to July 2025. Home sales in the remainder of the GTA were down 2.7 percent to 3,753, the report said.
All types of housing in the region experienced a decline in activity last month, with the exception of detached homes, which recorded a 0.6 percent increase in year-over-year sales.
Semi-detached homes saw the largest sales decline at 5.9 percent, with townhouse sales following closely behind at a 2.7 percent decrease, the report found. Condo transactions experienced a negligible drop of 0.1 percent.
Board CEO John DiMichele described restrictive zoning, outdated rules, high taxes and fees, and approval delays as “roadblocks” to attaining housing in the Toronto area.
He said these issues make housing “more expensive” and add tens of thousands of dollars to the cost of every home.
The Canadian Press contributed to this report.
