The Toronto Regional Real Estate Board (TRREB) has released its June 2025 Market Watch report, and the data tells a compelling story of a housing market in flux. While some buyers remain on the sidelines, affordability is slowly improving, and there are early signs that market conditions are stabilising. At the same time, a historic surge in listings suggests a significant shift in the balance of power from sellers to buyers.
Let’s break down the numbers, trends, and what this all might mean for the Greater Toronto Area (GTA) housing market.
Headline Stats: Prices Down, Listings Up, Sales Steady
According to TRREB’s report, 6,243 homes were sold in June 2025, representing a 2.4% decline compared to June 2024. That dip in year-over-year sales may seem minor, but it comes with important context: inventory is at an all-time high. The GTA saw 31,603 active listings last month – the highest ever recorded in a single month by TRREB.
At the same time, the average selling price declined 5.4% year-over-year, from $1,162,167 in June 2024 to $1,101,691 in June 2025. Similarly, the MLS® Home Price Index (HPI) Composite Benchmark was down 5.5%. These price drops reflect a more favourable environment for buyers, especially when coupled with lower borrowing costs due to recent interest rate cuts.
New Listings Surge, But Sales Lag Behind
Another key indicator to note is the rise in new listings, which totalled 19,839 in June 2025, up 7.7% from the same time last year. This surge in inventory adds pressure on sellers to price competitively, especially as days on market (LDOM) climbed to 26 days from 20 a year earlier. It’s a sign that homes are taking longer to sell, and buyers are in a stronger negotiating position than they’ve been in recent memory.
Despite the slight year-over-year dip in sales, the month-over-month trend offers some optimism. On a seasonally adjusted basis, sales increased from May to June, while new listings declined – a tightening trend that has been emerging since spring.
A Shift Toward Affordability?
TRREB President Elechia Barry-Sproule highlighted this improving affordability in the Board’s press release:
“With more listings available, buyers are taking advantage of increased choice and negotiating discounts off asking prices. Combined with lower borrowing costs compared to a year ago, homeownership is becoming a more attainable goal for many households in 2025.”
This statement captures a significant turning point in GTA real estate. After years of soaring prices and aggressive bidding wars, buyers are finally regaining some leverage. That shift is particularly important for the first-time buyers who have been priced out of the market for much of the past decade.
However, TRREB was quick to temper optimism with caution, pointing out that economic uncertainty continues to weigh heavily on buyer confidence.
Home Type Breakdown: Detached and Condo Markets Feel the Pressure
Here’s how different home types fared year-over-year:
| Home Type | Avg. Price (2025) | % Change from 2024 | Sales Volume Change |
|---|---|---|---|
| Detached | $1,392,033 | -6.0% | +0.8% |
| Semi-Detached | $1,089,751 | -1.2% | +0.3% |
| Townhouse | $957,605 | -5.0% | +6.7% |
| Condo Apartment | $696,424 | -4.3% | -0.7% |
The detached market – traditionally the most expensive segment – saw the largest price drop, at 6.0%. However, sales volumes held steady, suggesting that buyers in this segment may be returning as prices adjust downward. Townhouses were the standout in terms of sales growth, rising 6.7% from last year, likely driven by their relative affordability and family-friendly layouts.
Condos, on the other hand, remained soft. Prices fell 4.3%, and sales dipped slightly. This could reflect lingering concerns over carrying costs, investor pullback, or preference shifts toward freehold homes.
The Inventory Explosion
The most dramatic figure in this report is the record-breaking 31,603 active listings, a milestone that underscores just how much the GTA market has changed. Not only does this reflect seller confidence – perhaps believing the worst of the rate hikes are behind us – it also suggests that many properties are simply taking longer to move.
TRREB’s Chief Information Officer Jason Mercer commented on the current environment, pointing to macroeconomic forces that continue to hold sway:
“Two additional interest rate cuts would make monthly mortgage payments more comfortable for average GTA households. This could strengthen the momentum experienced over the last few months and provide some support for selling prices.”
Until then, high inventory will likely keep prices contained, especially if sales don’t materially accelerate in the coming months.
Beyond Economics: Public Safety and Policy on the Radar
Interestingly, the TRREB release took a brief but notable detour into social commentary. CEO John DiMichele raised concerns over rising violent home invasions and carjackings, linking them to broader housing insecurity and public confidence:
“It is important to highlight that housing is not just impacted by economic and financial issues. Canadian residents, both homeowners and renters alike, are increasingly having to deal with the nightmare of violent home invasions and carjackings.”
DiMichele expressed cautious optimism about a forthcoming federal crime bill introducing tougher bail and sentencing measures. While unusual for a housing market report, this highlights TRREB’s expanding concern over the intersection of housing, security, and policy.
A Market at a Crossroads
The June 2025 TRREB data reveals a market undergoing meaningful change. On one hand, affordability is improving, inventory is plentiful and buyers are negotiating again. On the other hand, economic caution and social concerns are dampening enthusiasm.
For prospective buyers, this may be the moment many have been waiting for. For sellers, the message is clear: price realistically, be patient, and prepare to negotiate. For policymakers, it’s yet another signal that housing in the GTA is not just a market issue – it’s a deeply layered economic and social challenge.
The rest of 2025 will be crucial in determining whether this marks a true turning point or a temporary plateau in the long arc of Toronto real estate.
