GTA housing prices have fallen this year with slower than expected housing market: report

A real estate sign showing homes for sale is seen in Montreal on Monday, March 24, 2025. (Christinne Muschi/The Canadian Press)

Home prices in and around Toronto have slipped this year, with the housing market getting off to a slower than expected start, according to a recent Royal LePage report on Canadian housing trends.

The Royal LePage Q3 2025 Home Price Update and Market Forecast, which was released Wednesday, found the surplus of inventory is putting buyers in a good spot, with sales slowly trending upwards in the last few months.

The decline of both home prices and borrowing rates is putting previously sidelined buyers in an empowering place, said Royal LePage broker Shawn Zigelstein.

“I do see it as a buyer’s market, especially when we’re talking about the condo sector,” he told CP24 on Wednesday. “Detached homes are still selling. They’re taking a little big longer than usual, but we’re definitely seeing more of a buyer’s preference in the market right now.”

In the GTA, the average price of a home fell 3.5 per cent year-over-year to $1,114,900 in the third quarter of 2025. For a single-family detached home, the average price went down 1.2 per cent year-over-year to $1,403,800. Meanwhile, the average price of a condo fell 7.4 per cent to $668,700.

In the City of Toronto, the average home price slipped 4.6 per cent to $1,076,700, in the same period. The median price of a single-family detached home went down 7.4 per cent year-over -year to $1,548,700, while the price for a condo went down by 5.6 per cent to $644,700.

When it comes to the difference in prices between homes and condos in the GTA versus Toronto, Zigelstein said it’s all about affordability.

“A lot of people have gone out of the city core in order to purchase larger properties or more single family homes,” he said. “Once they’re getting into the city and they’re looking at average prices, we are seeing affordability coming back… However, what we’re not seeing at the same time are those buyers running back in.”

Zigelstein predicts that could change when more workplaces require their employees to return to the office, and people want to avoid commuting.

As for the rest of the year, Zigelstein suspects the declining trend will continue through the fall, and policy reform will be needed before activity eventually spikes again.

Royal LePage predicts the aggregate price of homes in the GTA will decline three per cent in the final quarter of the year, compared to the same time last year.

When it comes to the rest of Canada, the aggregate price of a home in Greater Montreal went up 4.9 per cent year-over-year, while Greater Vancouver’s market faired similarly to Toronto’s, with a 3.1 per cent decline in the third quarter.

The same report last year predicted that Toronto home prices would rise in 2025, but that condo prices wouldn’t recover.