Toronto Housing Market Sees Uptick in Sales Following Bank of Canada Rate Cut
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In September 2025, Toronto's housing market experienced a notable uptick in activity, with home sales increasing by 8.5% year-over-year, totaling 5,592 transactions. This rise was accompanied by a slight 0.2% month-over-month increase in the average selling price, which reached $1,059,377. Despite this, the average price remained 4.7% lower than the previous year, indicating a trend of declining prices. The composite benchmark price also saw a 5.5% decrease from September 2024.
The uptick in sales coincided with a reduction in the Bank of Canada's benchmark interest rate to 2.5% on September 17, following a series of consecutive holds since March. This rate cut was welcomed by the Toronto Regional Real Estate Board (TRREB), as it lowered borrowing costs, making homeownership more accessible for many households. TRREB President Elechia Barry-Sproule noted that the rate cut allowed more buyers to afford monthly mortgage payments on homes that meet their needs.
In terms of inventory, the market saw a 3.9% increase in new listings compared to the previous year, totaling 19,260 properties. Active listings also rose by 18.9%, reaching 29,394 homes on the market. The City of Toronto accounted for 2,063 sales, marking a 13.2% increase from September 2024, while the rest of the Greater Toronto Area (GTA) experienced a 5.9% rise in sales, totaling 3,529. Among property types, semi-detached homes led with an 11% increase in sales, followed by detached houses at 9.6%, and condos at 7.2%. Townhouses saw a 4.4% increase in sales compared to the previous year.
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