As we move deeper into the fall season, September’s market data offers one of the clearest pictures yet of how Toronto real estate is evolving. Lower prices, reduced interest rates, and an active level of inventory have created a unique setup for both buyers and sellers.
Across the Greater Toronto Area (GTA), prices are down about 5% from last year, while the number of active listings has increased by 19%. Interestingly, sales are up 8.5% — the highest level for a September since before 2022. This combination of lower prices and rising activity suggests that many buyers are re-entering the market now that affordability has improved.
Toronto vs. the GTA
Toronto proper continues to perform differently than the surrounding regions. Within the city, average prices have fallen by roughly 2% compared to last year, but they remain higher than 2022 levels. Listings have nearly doubled since 2022, while sales are up 14%. The result is a more balanced market that still shows strength in Toronto’s most desirable neighborhoods.
Certain areas such as Lawrence Park, Leslieville, Trinity Bellwoods, and Bloor West continue to see multiple offers and quick sales for well-presented homes. Properties that are priced accurately and in move-in condition are still attracting strong buyer interest, even as the broader market adjusts.
The Role of Interest Rates
Interest rates have shifted dramatically from where they stood a year ago. The overnight rate, which was around 5% in mid-2023, has now dropped to 2.5%. Fixed mortgage rates that once sat between 6% and 6.5% are now in the high threes to low fours. This roughly 2% decrease has improved affordability for many buyers who were previously priced out of the market.
With prices easing and borrowing costs lower, affordability has reached one of its most favorable points in recent years.
Property Type Breakdown
Detached homes continue to show stable performance, while semis and townhouses are seeing steady activity. Condo sales are also increasing, although pricing remains below peak levels. The average condo price in central Toronto (C01) has dropped roughly $170,000 from its 2022 high, while prices in C08 are down about $160,000.
Despite these declines, the best condos — those in prime locations with strong layouts and good finishes — continue to perform well.
Transactions and Demand
The volume of real estate transactions across the GTA, including both sales and leases, remains strong. Although the number of home sales is below 2022 levels, rental activity has filled much of that gap. This indicates that housing demand remains high, even if more people are currently choosing to rent rather than buy.
Benchmark Pricing Trends
Benchmark prices have adjusted significantly since the early 2022 peak. The GTA’s benchmark price has dropped from $1.68 million in February 2022 to $1.25 million in September 2025 — a clear reset. In Toronto, detached homes are down roughly $500,000, semis by $300,000, and townhomes by about $150,000 compared to the peak.
What It Means Going Forward
The Toronto real estate market remains active, balanced, and nuanced. Buyers are finding better opportunities than they’ve seen in years, while sellers who position their homes well continue to attract attention. The overall data suggests stability with potential for growth as rates remain lower and demand continues to build.
Understanding the local variations between Toronto and the broader GTA will be key for anyone planning to make a move in the months ahead.
Across the Greater Toronto Area (GTA), prices are down about 5% from last year, while the number of active listings has increased by 19%. Interestingly, sales are up 8.5% — the highest level for a September since before 2022. This combination of lower prices and rising activity suggests that many buyers are re-entering the market now that affordability has improved.
Toronto vs. the GTA
Toronto proper continues to perform differently than the surrounding regions. Within the city, average prices have fallen by roughly 2% compared to last year, but they remain higher than 2022 levels. Listings have nearly doubled since 2022, while sales are up 14%. The result is a more balanced market that still shows strength in Toronto’s most desirable neighborhoods.
Certain areas such as Lawrence Park, Leslieville, Trinity Bellwoods, and Bloor West continue to see multiple offers and quick sales for well-presented homes. Properties that are priced accurately and in move-in condition are still attracting strong buyer interest, even as the broader market adjusts.
The Role of Interest Rates
Interest rates have shifted dramatically from where they stood a year ago. The overnight rate, which was around 5% in mid-2023, has now dropped to 2.5%. Fixed mortgage rates that once sat between 6% and 6.5% are now in the high threes to low fours. This roughly 2% decrease has improved affordability for many buyers who were previously priced out of the market.
With prices easing and borrowing costs lower, affordability has reached one of its most favorable points in recent years.
Property Type Breakdown
Detached homes continue to show stable performance, while semis and townhouses are seeing steady activity. Condo sales are also increasing, although pricing remains below peak levels. The average condo price in central Toronto (C01) has dropped roughly $170,000 from its 2022 high, while prices in C08 are down about $160,000.
Despite these declines, the best condos — those in prime locations with strong layouts and good finishes — continue to perform well.
Transactions and Demand
The volume of real estate transactions across the GTA, including both sales and leases, remains strong. Although the number of home sales is below 2022 levels, rental activity has filled much of that gap. This indicates that housing demand remains high, even if more people are currently choosing to rent rather than buy.
Benchmark Pricing Trends
Benchmark prices have adjusted significantly since the early 2022 peak. The GTA’s benchmark price has dropped from $1.68 million in February 2022 to $1.25 million in September 2025 — a clear reset. In Toronto, detached homes are down roughly $500,000, semis by $300,000, and townhomes by about $150,000 compared to the peak.
What It Means Going Forward
The Toronto real estate market remains active, balanced, and nuanced. Buyers are finding better opportunities than they’ve seen in years, while sellers who position their homes well continue to attract attention. The overall data suggests stability with potential for growth as rates remain lower and demand continues to build.
Understanding the local variations between Toronto and the broader GTA will be key for anyone planning to make a move in the months ahead.
