Greater Toronto Area (GTA) Real Estate Market Update: Q2 2025 Overview

The GTA real estate market shifted in Q2 2025. Listings rose sharply and prices softened, giving buyers more time and choice. At inCAN Developments, we see this as a healthier, more balanced market—especially for first-time buyers, growing families, and value-conscious investors.

Detached homes are showing signs of stabilizing, while the oversupplied condo segment remains weak. In the industrial sector, rising vacancy and lower rents are tipping the balance in favor of tenants.

Looking ahead, we expect strong-performing projects to focus on location, design, and livability. As interest rates trend lower, homes that meet real lifestyle needs will stand out. inCAN remains committed to building thoughtful, future-ready communities across the GTA.

Market & Price Trends

• Home prices down ~3% YoY to $1.16M (avg).

• Benchmark price in June: $995K, down 5.5% YoY.

• Average sold price: $1.1M, down 5.2%.

• June sales up 3% MoM; listings surged to 31,600+, a 30-year high.

Supply & Market Conditions

• May & June each saw 31,000+ active listings.

• Sales-to-New-Listings Ratio at 32% – a clear buyer’s market.

• Homes took longer to sell: 42 DOM, 98% sold-to-list ratio.

 Segment Insights

• Detached: –6% → ~$1.39M

• Semi-detached: –1.2% → ~$1.09M

• Townhouses: –5.5% → ~$966K

• Condos: –4.3% → ~$696K

Condos remain weak due to investor retreat and oversupply.

 Industrial & Commercial

• Vacancy hit 5.0%, availability rose to 5.6%.

• Net rents averaged $17/psf, down 6% YoY.

• West GTA vacancy: 6.2%; North GTA remains tighter at 3.3%.

• Asking rents over $20/psf dropped to just 2%, down from 12% YoY.

Economic Outlook

• Reuters: National home prices to fall 2% in 2025; Toronto down 4%.

• TD Economics: Prices to stay soft through late 2025; modest rebound in 2026.

• Buyer caution continues amid high uncertainty and weak sentiment.

Q2 Takeaways

Insight	Details
Buyer’s Market	Low SNLR + high inventory favors buyers.
Prices Falling	All segments down; condos hit hardest.
Market Split	Detached stabilizing; condos still weak.
Industrial Leverage	More power to tenants as rents soften.
Global Uncertainty	Trade risks, rates, and migration all influence outlook.

Q3 & Beyond: What to Watch

• Will lower rates revive buyer confidence?

• Will condo oversupply continue to weigh down prices?

• Can industrial users lock in better lease terms?

• Will population trends and immigration policy shift demand?

Final Thoughts

Q2 saw cautious buyers, falling prices, and record supply—especially in the condo market. Detached homes may be finding a floor, but investors remain on the sidelines. Industrial occupiers are gaining leverage, and tenants are negotiating more favorable deals.

As interest rates ease, the second half of 2025 may offer a path to recovery—especially in markets and segments with strong fundamentals.

Disclaimer: This article uses data from CREA, TRREB, CMHC, WOWA.ca, Cushman & Wakefield, and other public sources as of Q2 2025. Market conditions may change. This content is for general information only and is not financial advice.