Toronto Real Estate Market Update — September 2025

While summer wrapped up quietly, September brought a subtle shift in tone. With a much-watched ¼-point rate cut finally landing, many buyers and sellers returned from vacation wondering if the fall market would wake up — and whether confidence would start to crawl back.

Here’s a look at what actually happened in September, and what it means heading into the rest of the year.

Did the ¼-Point Rate Cut Wake Up the Market?

With another slow summer market coming to an end, September brought that familiar sense of anticipation for what the fall might bring. Both buyers and sellers were keeping a close eye on the Bank of Canada, expecting a much-anticipated key interest rate reduction.

That cut finally came, a modest ¼-point drop, bringing the key rate down to 2.5%. The industry was watching closely to see how this would affect buyer sentiment and whether it would be enough to bring people off the sidelines.

While there’s been a noticeable uptick in showings and sales activity, it doesn’t seem to have moved the sticks quite as much as many had hoped… at least not yet.

There are also rumours that the Bank of Canada may introduce another rate cut before year’s end, but with ongoing economic uncertainty, we’ll have to wait and see how things unfold

A Step in the Right Direction

After a sluggish summer, September brought a small but noticeable boost in market activity. There were 5,592 home sales across the GTA, up 8.5% year-over-year — a solid gain, especially following the recent rate cut. That said, activity is still sitting below historical norms relative to the number of homes across the region.

Meanwhile, 19,260 new listings hit the market, marking a 3.9% increase from last September. That’s a healthy rise in supply and one of the reasons buyers are feeling a bit more breathing room than they did this time last year.

The average selling price across all home types landed at $1,059,377, down 4.7% year-over-year. Prices have eased somewhat but remain relatively stable considering the broader economic backdrop and higher borrowing costs.

Overall, this wasn’t the market rebound many were hoping for — but it does show renewed signs of life. With more listings, more choice, and a hint of cautious optimism, September felt like a reset rather than a rush.

Condos Still Feeling the Squeeze

The condo market hasn’t quite found its footing yet, and September didn’t change that story much. There were 1,437 condo sales across the GTA, up 7.3% year-over-year — but that bump in activity comes mostly from prices continuing to slide.

The average condo price landed at $655,231, down 4.3% from last year. It’s not surprising — the combination of higher borrowing costs and growing inventory has kept things soft. Smaller investor-owned units, in particular, are piling up as more owners offload or pivot to renting instead.

But for buyers, this is where opportunity hides. With more choice, more negotiability, and fewer bidding wars, there’s room to get creative — especially for those thinking long-term. Condos may not be “bouncing back” just yet, but they’re becoming one of the most realistic entry points for buyers looking to break into the market and hold for future growth.

Looking Ahead

As we roll into the final stretch of the year, things feel like they’re slowly settling into place. The panic that defined parts of last year is gone, and what’s left is a market that’s… steady. Not exciting, but not terrible either.

Buyers are adjusting to today’s reality — higher borrowing costs, more listings, and a bit more breathing room to make decisions. Sellers are learning that strategy matters again — pricing, presentation, and timing are everything.

If rates continue to ease (and there’s talk they might), we could see activity pick up again heading into winter. But even if that happens, it’s not likely to be a surge — more of a slow build as confidence returns.

So, while it might not feel like a headline-grabbing market, this is often when the best opportunities show up — the quiet, steady months where smart moves happen behind the scenes.

Check out the August Market Update

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