As of June 2025, Toronto’s real estate market is showing signs of cautious recovery amid economic uncertainties
Home sales in the Greater Toronto Area (GTA) rose by 8.4% in May, marking the most significant monthly increase in four months. This uptick is largely attributed to improved affordability stemming from declining borrowing costs, following a 2.25 percentage point cut by the Bank of Canada since June 2024.
The average home price in Toronto stands at approximately $1,176,089, reflecting a 2.7% monthly increase. However, year-over-year, prices remain about 4.5% lower.
Despite the recent sales boost, transactions are still down 13.3% compared to the previous year, while new listings have increased by 14%, offering more options for buyers.
The market dynamics vary across property types. Freehold properties are generating strong rental cash flow and may benefit from Toronto’s new sixplex zoning rules, making them more attractive to investors. Conversely, the condo market faces challenges, with prices down 7.3% year-over-year to an average of $593,000, and many investors experiencing negative cash flow.
Overall, while the market isn’t booming, it isn’t crashing either. Buyers are cautiously re-entering the market, encouraged by lower interest rates and increased inventory, but lingering economic uncertainties, including trade disputes with the U.S., continue to weigh on buyer confidence.
For those considering entering the market, focusing on properties that offer positive cash flow and potential for value addition, such as multiplexes, may be a prudent strategy in the current climate.