July 2025 Market Report: GTA Housing Sees Signs of Life Amid Strategic Buyer Movement
As the Greater Toronto Area (GTA) continues its journey through a complex housing cycle, July 2025 marks a transitional moment. While some segments are showing resilience, others—especially condos and entry-level luxury homes—remain under pressure. DASH breaks down the numbers and emerging trends that matter.
Detached Homes Hold the Market Together
Despite a modest 2.4% year-over-year dip in June sales, detached homes continue to lead the market, representing nearly 50% of all transactions. First-time buyers have emerged as a powerful force in this segment, particularly in the $850K–$1.2M range, where competition is heating up. Well-located properties in Toronto’s core are moving fast—averaging just 19 days on market in early 2025.
More established neighbourhoods in the $1.8M–$2.2M range are also seeing healthy activity, with families seeking lifestyle stability and long-term value. As buyer psychology remains cautious, strategic offers are becoming the norm, and sellers are being forced to choose between holding firm or recalibrating expectations.
Condo Market: Still Searching for the Bottom
Condominium resale prices have declined again, down 6.4% year-over-year, with the average price at $683,413—the lowest level in four years. Supply has risen to 7.1 months, reflecting cooling investor interest and tighter rental returns.
While two-bedroom units are garnering more attention, investor-style one-bedroom condos are struggling, facing high vacancy risks and less favorable cap rates. Over the past three years, the condo market has lost 12% in value, with many owners now operating at reduced margins or losses.
Luxury Market: A Tale of Two Segments
The entry-level luxury tier ($2.8M–$3.3M) has seen the most dramatic slowdown, with listings outpacing sales and buyer interest cooling. However, the ultra-luxury segment ($3.8M–$4M) has remained relatively stable. These buyers are less rate-sensitive and more driven by lifestyle needs—second homes, generational wealth, and personal freedom.
Sales-to-New Listings Ratio Suggests Balance, for Now
With new listings up 7.7% year-over-year and demand still cautious, buyers now have more breathing room. The Sales-to-New Listings Ratio remains in neutral territory, signaling a balanced market, but it could shift quickly.
What’s Next: Interest Rates, Confidence, and Momentum
Signs are pointing to a late-arriving spring market in the heart of summer. With more showings, more offers, and more active searches, there’s cautious optimism building.
If interest rates drop again later this summer, we may witness the return of pent-up demand—bringing momentum and possibly more aggressive price movements heading into fall.
Key Takeaways
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📉 Detached Homes: Still performing, especially under $1.2M
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🏢 Condos: Down 6.4% YoY, oversupplied, investor demand soft
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💰 Luxury: Slower entry-level, but high-end remains strong
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📊 Market Balance: Neutral for now, but watch for late-summer shifts
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📈 Buyer Behavior: Strategic, price-conscious, and ready to move—if the math checks out
📍 Stay ahead of the market. For tailored insights or property advice, connect with DASH at www.DashPM.ca or call 416-222-6175.
