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Toronto Housing Market Report

Market Report Summary for August 2025

The Greater Toronto Area’s benchmark home price for August 2025 was $969,700, down 5.2% year-over-year.
The average home sold price in the GTA decreased 4.9% year-over-year to $1,022,143 for August 2025.
Detached home average price decreased by 7.2% year-over-year to $1.31M.
Semi-detached home average price decreased by 4.5% year-over-year to $980k.
Freehold townhouse average price decreased by 4.5% year-over-year to $946k.
Condo apartment average price decreased by 4.8% year-over-year to $642k.
September 19, 2025 Update: Today’s Lowest mortgage rate in Toronto is 3.64% for 3-Year Fixed.

Guelph developer declares multiple bankruptcies and faces allegations of operating a Ponzi scheme

It’s the $70-million question: where is the money?

A prominent Guelph developer has declared bankruptcy for multiple companies and is now being accused of operating a Ponzi scheme with international ties.

Over the past two months, Scott Reid, owner of Reid’s Heritage Properties (RHP), has filed for personal bankruptcy, as well as for companies that are part of his real estate business.

The developer is now at the centre of a civil suit claiming he misled investors to the tune of $70 million. A statement of claim against Reid’s Heritage Properties was filed Aug. 1 in Guelph.

How Toronto’s Return-To-Office Mandates Could Reshape The Housing Market

Pandemic distortions pushed suburban prices beyond their historical relationship with the city and that spread is now narrowing. The great return-to-office recall will continue to reinforce that pattern, pulling value back toward the core.

Toronto is about to stage a drama unlike any other city on the continent. After years of silence in its glass towers, the country’s most powerful employers are summoning workers back, not for a day or two but for four and five days a week. Sixty thousand civil servants, armies of bank employees, the foot soldiers of telecom empires, all called to fill desks that have sat half empty since the world locked down. What looks like a cultural correction is in fact an economic experiment, one that will decide the fate of suburbs, test the strength of downtown real estate, and reveal just how far employers are willing to go in a labour market that has turned against its workers.

Bank of Canada To Make 3 Interest Rate Cuts Before Spring 2026: BMO

Canada’s real estate market finally got some good news—cheaper financing may be coming. The Bank of Canada (BoC) will cut rates three times before the traditionally busy Spring real estate market, according to a report from BMO Capital Markets. The recent labour market erosion has the market fully pricing in the first cut within the next few days. However, the bank notes caveats that sticky inflation and an upcoming CPI report can swing market expectations fast.

Bank of Canada To Cut Rates 3x Before Spring 2026, Market Forecasts First Cut Within Days
Canada’s oldest bank sees rates being slashed fairly aggressively before Spring 2026. BMO’s current forecast is expecting 75 basis points (bps) trimmed by Spring 2026, which works out to three rate cuts. They note the market is currently pricing in the first cut in just a few days, at the BoC’s September 17th meeting.

“We see scope for 75 bps of further easing through the spring of 2026. That would leave rates at the low end of the neutral range and give the economy a little bit of extra support that it seems to need,” writes Robert Kavcic, senior economist at BMO.

Posthaste: The odds of a Bank of Canada rate cut just rose based on this jobs measure, CIBC says

The odds of a Bank of Canada interest rate cut are now rising based on a different measure of Canada’s jobs market, CIBC says.

Employment contracted by 32,500 positions in June, according to Statistics Canada’s survey of employment, payrolls and hours (SEPH) for June released on Thursday morning. The odds of a Bank of Canada rate cut when policymakers meet on Sept. 17 have since risen to 50-50, Noah Buffam, an associate in fixed income, currency and commodities at CIBC Capital Markets, said in an email.

Canadians are looking to ditch U.S. properties, and there’s one overriding reason

As tensions continue to simmer with the U.S., more Canadians are considering dumping their properties south of the border, says a new survey from real estate company Royal LePage.

The survey, conducted by PR firm Burson, found more than half (54 per cent) of Canadians who own an American residential property are considering selling it in the next year.

“It’s a hundred small things and one big dark cloud,” said Phil Soper, CEO of Royal LePage.

Chances of September BoC rate cut rise after economy weakens in Q2

The national economy regressed in the second quarter as trade tensions with the US continued to pummel the growth outlook, leading markets to increase their expectations of a September interest rate cut by the Bank of Canada.

Statistics Canada said on Friday morning that gross domestic product (GDP) slowed by 1.6% year over year in the second quarter, slightly more than the central bank had expected, as exports fell amid the ongoing trade war.

Markets priced in a 55% chance that the central bank would cut rates in its next decision, up from around 40% before the announcement, signalling that traders view a reduction as more likely – but still not a cert.

New report finds home sales in the GTA in July were at the lowest levels seen in decades

New home sales in the Greater Toronto Area remain “exceedingly low,” with July seeing the lowest levels in decades, according to a new report.

The report, published by the Altus Group on behalf of the Building Industry and Land Development Association (BILD), warned that the current levels are “eclipsing the 1990s downturn.”

Researchers with the Altus Group found home sales in July were down by 48 per cent compared to last year, even lower than the 10-year average.

The report said new home sales for a typical July in the GTA would be 1,941 units based in the previous 10-year average. But only 359 homes were sold in July 2025.

Of the homes sold in the region, condominium apartments, including units in low, medium, and high-rise buildings and stacked townhouses accounted for only 150 units this July, 44 per cent lower than last year and 60 per cent below the 10-year average, the report said.

Unemployment rate climbed to 7.1 per cent in August as economy lost 66,000 jobs

The Canadian economy lost jobs for the second month in a row and the unemployment rate climbed to its highest level since May 2016, excluding the pandemic period, Statistics Canada reported on Friday.

The weaker-than-expected reading of the labour market prompted financial markets to increase the odds the Bank of Canada will cut its key interest rate target later this month.

The unemployment rate ticked up to 7.1 per cent in August as the economy lost 66,000 jobs for the month. The monthly jobs report comes after the July labour force survey that showed a loss of 41,000 jobs and an unemployment rate of 6.9 per cent.

A poll of economists heading into the release had expected August to show a gain of 10,000 jobs and the unemployment rate to rise to seven per cent for the month, according to LSEG Data & Analytics.

August Uptick in GTA Home Sales and New Listings

August home sales reported by the Toronto Regional Real Estate Board (TRREB) were up on a year-over-year basis. Over the same period, homebuyers benefitted from an even larger increase in the inventory of listings. Average selling prices continued to be negotiated downward due to the elevated choice across market segments.

“Compared to last year, we have seen a modest increase in home sales over the summer. With the economy slowing and inflation under control, additional interest rate cuts by the Bank of Canada could help offset the impact of tariffs. Greater affordability would not only support more home sales but also generate significant economic spin-off benefits,” said TRREB President Elechia Barry-Sproule.