Conditions that favour the GTA buyer continued in August. And while there wasn’t a deluge of Total Sales, they were higher than a year ago, as were New Listings.
With these conditions, more choice and more affordable prices than in 2024, buyers can be more selective than in the past. And while reduced sales prices make a huge difference, there’s more at play. Buyers are benefitting from being able to take time to make decisions, being able to include several conditions, and generally a calmer more measured purchase experience.
Conversely, these conditions put more pressure on sellers to make their property stand out from similar homes. But if another rate cut is announced on September 17, these conditions might change but based on these statistics, whenever the market picks up, it’s likely to be a slow shift.
Let’s look at more of the details from the GTA real estate market in August:
GTA
The Average Sales Price in the GTA fell for the third straight month, from $1,051,719 in July to $1,022,143 (-2.8%) in August. This decrease is similar to the market’s performance over the past two years for this period (-2.9%, -3.2%). However, it is 5.2% lower year-over-year ($1,077,742), aligning with the trend in prices when comparing 2025 to 2024.
Total Sales
After consecutive small decreases over the past two months, Total Sales fell significantly last month, from 6,100 in July to 5,211 in August (-14.6%). However, when compared to August 2024, sales were still 2.3% higher than the 5,092 recorded in August 2024. Basically August is usually a slow month but we are also seeing the impact of saturated supply and lackluster buyer activity.
New Listings
Right in line with the direction of the first two monthly metrics above, New Listings fell for the third consecutive month. While the fall from 17,613 in July to 14,038 is a sizeable -20.3%, it’s not as large as the 23% decrease for the same period in 2024. What about the number of New Listings in August 2024? There were only 12,837, 9.4% lower than last month. Many folks have been waiting for months or years for the market to pick up so we could see a boost of supply from those who are hoping for a booming fall market.
Active Listings
After a three-month run of Active Listings exceeding 30K, August’s metric fell 9% to 27,495. Considering that the summer months are typically slower with many people enjoying vacations, the drop isn’t a surprise. Nevertheless, the total is still 22.4% higher than the 22,469 registered in August 2024.
Toronto
For the first time since January, the Average Sales Price in the City of Toronto fell below $1M. July’s $1,044,576 was 5.0% higher than the $992,085 recorded in August.
Total Sales plummeted in the 416 as well, from 2,205 in July to 1,779 in August. That’s a fall of 19.3%. While we continue to see a stark difference between condo and freehold sales, both markets were depressed this summer (especially condos). Well appointed homes in family friendly neighbourhoods continue to be the most resilient in this market.
It was the same story for New Listings in the City’s core. After dropping by 14.8% from June to July, the fall was 24.5% from 6,008 to 4,538. Active Listings decreased to below 10K, dropping from 10,933 in July to 9,644 in August (-11.8%).
It remains a buyer’s market. The Sales-to-New-Listings Ratio (SNLR) in Toronto fell by a smidge, from 34.6% to 34.5%. In the GTA, SNLR inched lower to match the statistic of the City, from 34.7% to 34.5%. This has many people wondering if this is what the bottom looks like?
Outlook
We’re still waiting for that big run of activity in the market, and an interest rate cut by the Bank of Canada on September 17th could be the catalyst for at least a shift in direction. While a cut of a quarter of a percent may not seem like much, it could mean a lot to the mindset of buyers. We continue to see the impact of global and economic uncertainty playing out as depressed real estate consumer confidence. Add in reduced immigration and severely limited international student approvals, and we have the perfect storm.
However with the fall season typically featuring a jump in activity, while we may not see runaway prices, we could be in for a busy fall if the right factors take effect.
If you’d like a custom evaluation of your situation, buying or selling, I can provide my expert advice!
Thinking of moving to the next stage? Let’s chat. Send me an email (hillary@hillarylane.ca) or text/phone (416-882-4707).
