Toronto's Real Estate Market: The August 2025 Buyer's Advantage and What It Means for You

The Toronto real estate market is at a pivotal point. After months of a cautious and uncertain environment, the latest data from the Toronto Regional Real Estate Board (TRREB) for July 2025 reveals a definitive shift—one that is creating an exceptional window of opportunity for buyers.

At RIISE, we believe in empowering our clients with transparent, data-driven insights. Here’s our breakdown of what the current market conditions mean for you, whether you’re a first-time homebuyer or a seasoned investor.

The Numbers Tell a Story of Increased Opportunity

The key to a buyer’s advantage is a balance between supply and demand. For much of the past few years, a tight supply created fierce competition. That’s no longer the case.

According to TRREB's latest report, the Greater Toronto Area (GTA) saw its strongest July for home sales in four years, with a 10.9% year-over-year increase in sales. While this signals renewed buyer confidence, it's occurring alongside a significant rise in inventory. New listings in July were up 5.7% compared to a year ago, and active listings have soared by over 26%. This abundance of choice gives buyers a significant upper hand.

The increase in supply relative to sales has had a predictable effect on prices:

• The average selling price for a home in the GTA in July was $1,051,719, representing a 5.5% decrease from a year earlier.

  
  

• The condo market, in particular, has seen a pronounced softening, with a substantial drop in the average selling price compared to its 2022 peak. This is an especially appealing entry point for first-time buyers and those looking for an investment property.

  
  

This means buyers can now negotiate with more power, take their time to find the right property, and potentially secure a home for less than what was common just a year ago.

Stability in Mortgage Rates Fuels Buyer Confidence

A major factor contributing to this market shift is the stability in borrowing costs. The Bank of Canada has held its key policy rate steady, with many analysts expecting a continued hold or even a modest cut in the coming months.

While mortgage rates are not at the historic lows of a few years ago, their current stability allows buyers to plan their finances with greater certainty. The current environment—where rates are no longer in a rapid-increase cycle and prices have adjusted—is proving to be the catalyst that’s bringing many back to the market after a long period of waiting.

The Bottom Line: Why August is a Prime Time to Buy

The current market is a rarity in Toronto. You have a combination of:

1. More Inventory: A wider selection of properties to choose from.

2. Increased Negotiating Power: The ability to make conditional offers and secure a property without a bidding war.

3. Adjusted Prices: An attractive entry point, especially for properties that have been on the market for a while.

4. Rate Stability: The confidence to secure financing without the fear of a sudden spike in borrowing costs.

For buyers, this is not just a passing trend; it's a unique opportunity to act.

Ready to seize the buyer's advantage?

At RIISE, we understand the Toronto market's nuances. Our team can help you navigate this favourable environment, whether you're looking for a new condo, a townhome, or an investment property.

Contact RIISE today for a personalized consultation

Phone: 647 695 2025

Email: info@riisebuilding.ca