These are the ‘hot pocket’ Toronto neighbourhoods that have seen home prices rise despite the tepid market

Real estate sale signage is shown on a street in Oakville, Ont., west of Toronto, on November 7, 2024. THE CANADIAN PRESS/Richard Buchan

Toronto and other large real estate markets in the country are seeing a rebound in demand and price growth for detached homes as signs of the “much-anticipated spring market materialized” last month, according to a new report from REMAX Canada.

“After a prolonged period of uncertainty, we’re starting to see slow but building momentum in Canada’s largest real estate markets,” Don Kottick, the president of REMAX Canada, said in a news release.

“Buyers who have been sitting on the sidelines for months, prepared and ready to pounce, are finally starting to make their moves.”

The 2025 Hot Pocket Communities Report analyzed sales data from 83 communities in the Greater Toronto Area, the Greater Vancouver Area and B.C.’s Fraser Valley between Jan. 1 and June 30.

The 416 area code in Toronto “led in rebounding momentum,” with just over 34 per cent of neighbourhoods seeing “stable or growing activity” in the detached home segment, the report found.

While the report noted that “most markets remain slightly off year-ago price levels,” it said that there are a number of pockets where median prices were up compared to 2024.

One pocket in west end Toronto, which encompasses Rockcliffe-Smythe, Keelesdale-Eglinton West, Caledonia-Fairbank, Corso Italia-Davenport and Weston-Pelham Park, saw a 6.2 per cent increase in the median price compared to last year ($1,102,706 versus $1,038,548). Another pocket which encompasses luxury properties in the Bridle Path-Sunnybrook-York Mills and St. Andrew-Windfields neighbourhoods saw a 11.5 per cent increase in median prices to more than $4.6 million.

There were more modest price gains in a handful of east Toronto neighbourhoods, including the South Riverdale, Greenwood-Coxwell, Blake-Jones, and North Riverdale corridors where REMAX said that the median price is up 1.7 per cent compared to this time in 2024.

The latest data from the Toronto Region Real Estate Board released earlier this month suggested that the average selling price across the GTA fell 5.4 per cent in June compared with a year earlier to $1,101,691.

For REMAX’s full list of the Toronto neighbourhoods where median prices have risen over the last year follow this link.

“Limited inventory levels in key areas of Greater Vancouver and Toronto proper — especially at affordable price points — are supporting price appreciation in the detached home category,” the REMAX report noted. “Greater Vancouver took the lead with 29.4 per cent (5/17) of communities noting an upswing in median price, and 22.8 per cent of 416 markets seeing the same.”

Key neighbourhoods in Toronto that led the way for percentage increases in sales included Yonge-St. Clair, Casa Loma, Wychwood, and the Annex, which were up 31.1 per cent.

In the eastern part of the city, five markets saw sales rise or hold steady, including the Beaches, Woodbine Corridor, East-End Danforth, which were up 27 per cent.

In the west end, three markets saw sales on par or ahead of year-ago levels, including South Parkdale, Roncesvalles, and High Park-Swansea.

In the GTA, the report notes, homes priced between $850,000 and $1.2 million in “key microcosms” are moving quickly, the report noted.

Overall housing sales in the GTA have declined year-over-year, the report added, but demand for detached houses continues to “bolster the market.” Approximately half of total sales are in this segment, according to REMAX.

“First-time buyers have been driving detached sales in recent weeks, spurred by the increase in May’s average price, with many realizing that as detached property values rise, the window of opportunity is closing,” the report read.

“Interest appears to be piquing with more listing views, more showings, and more offers. However, the buyer mindset has two settings — deal or no deal. They’re prepared to walk if the seller is unreasonable. Sellers, on the other hand are prepared to hold firm or, in more dire circumstances, end up setting new benchmarks for prices in their neighbourhood.”

While “pent-up demand” appears to be contained now, the report stated, one or two more interest rate cuts could work to “really stimulate activity.”

“Price, quality, time—consumers are often told to pick two, because it’s very rare to realize all three. In real estate, it’s the perfect trifecta. This may be one of the very rare windows of opportunity where active buyers could now reap the benefits of all three,” Kottick said.

“It’s an anomalous event from a historical real estate perspective to have ideal conditions in each these pivotal variables. It’s not only rare; it’s fleeting. As rebounding home sales gain momentum, the alignment will inevitably shift.”