As we closed out September 2025, Toronto’s real estate market continued to show a fascinating tug-of-war between rising buyer activity and elevated supply levels. While some renewed confidence returned to the market after recent interest-rate cuts, overall conditions still favoured buyers, with more listings available and prices under steady pressure.
🔍 Supply Outpacing Demand
The Greater Toronto Area (GTA) saw 19,260 new listings hit the market in September 2025 — up about 4% from the same time last year. While this is a slower pace of growth compared to earlier in the year, it still means there’s plenty of inventory for buyers to choose from. Active listings remain well above historical norms, and many sellers are finding themselves competing for attention in a more crowded marketplace.
On the demand side, sales did pick up — GTA REALTORS® reported 5,592 sales, an 8.5% increase year-over-year. That’s a positive sign after months of sluggish activity, suggesting that buyers are beginning to return as borrowing costs ease slightly and affordability stabilizes. However, this bump in demand hasn’t been strong enough to absorb the large volume of available homes.
The Sales-to-New-Listings Ratio (SNLR), one of the clearest measures of market balance, came in at roughly 29% in September. Anything below 40% indicates a buyer’s market, meaning there’s more supply than demand. Despite a modest uptick in activity, prices remained under pressure. The benchmark home price sat around $960,300, down roughly 5.5% year-over-year, while the average sale price was about $1.06 million, down 4.3%.
Month-to-month, there were small rebounds in certain segments — especially for detached homes in the core and move-in-ready listings — but these gains were often due to changes in sales mix rather than a broad-based price recovery.
Homes also spent longer on the market — averaging around 51 days, compared to 43 days last year. This slower pace of absorption reinforces the idea that while buyers are active, they’re taking their time, negotiating harder, and weighing options carefully. The September data tells a clear story: supply remains abundant, demand is improving, and the market is still tilted in favour of buyers. However, the slowdown in new listing growth combined with rising buyer activity hints that the market may be finding its footing.
If demand continues to strengthen into the fall and fewer sellers list their homes, Toronto could start to see early signs of price stabilization heading into 2026. For now, though, the upper hand still belongs to buyers — who benefit from more choice, flexible negotiations, and softer pricing.