Toronto Real Estate Market Report – September 2025
The Toronto real estate market in September 2025 continues to reflect shifting dynamics between buyers, sellers, and renters. With sales up slightly, listings climbing, and the rental market surging to new highs, this month’s housing report highlights a market that is becoming increasingly favorable for buyers while still challenging for cautious sellers.
👉 Want to compare this with last month? Check out our August 2025 Toronto Market Report
Sales and Listings: Steady Momentum
According to the Toronto Regional Real Estate Board (TRREB), 5,211 homes were sold in August 2025, a 2.3% increase year-over-year. Meanwhile, 14,038 new listings hit the market, up 9.4% from August 2024. This pushed active listings up 22.4%, creating more choice for buyers.
The average home price in Toronto fell 5.2%, extending affordability and giving first-time buyers and investors stronger opportunities to negotiate.
Toronto Rental Market Trends
One of the most notable stories in this Toronto housing market report is the sizzling rental market. Leasing activity reached levels not seen in more than two years, fueled by September move-ins, students returning to the city, government announcements, and renewed bank activity.
If this trend continues, leased rentals could soon outpace new listings, tightening condo supply as investors choose to rent out units rather than sell.
👉 Thinking of renting out your property? Explore our Property Management Services.
Hot Price Points and Property Insights
Multiple-offer scenarios are returning, especially in two key ranges:
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$800,000 to $1,250,000 – popular among buyers in high-demand neighbourhoods.
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$1,800,000 to $2,100,000 – move-up buyers regaining confidence.
Turnkey homes—modern, move-in-ready properties—are selling quickly. In contrast, dated homes in oversupplied areas are sitting longer, forcing sellers to adjust prices or invest in staging.
Confidence, Interest Rates, and Buyer Power
Beyond numbers, the Toronto housing market in September 2025 is being shaped by consumer confidence. Many buyers remain cautious, adopting a “wait-and-see” approach. While higher interest rates are a factor, economic uncertainty around jobs and growth is equally important.
With a possible interest rate cut expected in September, more buyers could return to the market this fall, eager to take advantage of current inventory levels. Already, buyers are gaining more leverage: conditional offers are now winning in multiple-offer situations—a major shift from the bidding wars of past years.
Key Takeaways
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For Buyers: More inventory, lower prices, and stronger negotiating power make this one of the best times to enter the market in recent years.
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For Sellers: Pricing and presentation are everything—staged, move-in-ready homes continue to perform best.
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For Investors: The rental market is red-hot, making leasing a stronger play than selling in many cases.
👉 Explore more of our Toronto Real Estate Market Reports for monthly updates.
📍 Stay ahead of the market. For tailored insights or property advice, connect with DASH at www.DashPM.ca or call 416-222-6175.