GTA Sees Strongest July Home Sales Since 2021 Amid Improved Affordability
The Greater Toronto Area (GTA) recorded its strongest home sales performance for the month of July since 2021. A year-over-year increase in transactions, coupled with a slower rise in listings, indicates a slight tightening in the housing market compared to the same period last year.
According to Elechia Barry-Sproule, President of the Toronto Regional Real Estate Board (TRREB), improved affordability—driven by declining home prices and lower borrowing costs—has begun to stimulate buying activity. She emphasized that although further relief is needed, especially in terms of interest rates, more households are finding viable homeownership opportunities.
In July 2025, GTA REALTORS® reported a total of 6,100 home sales through TRREB’s MLS® System, marking a 10.9% increase compared to July 2024. Meanwhile, 17,613 new listings were added, representing a more modest 5.7% annual increase. On a seasonally adjusted basis, both home sales and new listings were up compared to June, though sales rose at a faster rate. This suggests that demand is beginning to catch up with supply, tightening the market slightly.
The MLS® Home Price Index (HPI) Composite benchmark declined by 5.4% year-over-year in July 2025. The average selling price stood at $1,051,719, down 5.5% from the previous July. However, on a seasonally adjusted monthly basis, both the HPI Composite and the average selling price remained steady from June, indicating price stabilization.
Jason Mercer, TRREB’s Chief Information Officer, noted that economic growth is currently stagnant, partly due to trade uncertainties with the United States. He suggested that stimulating domestic sectors, such as housing, could provide economic momentum. Lower interest rates, in his view, would not only drive up home sales but also trigger a range of related economic activities, supporting job creation and regional development.
TRREB CEO John DiMichele addressed a common misconception regarding Canada’s foreign buyer ban. While many believe the federal ban prohibits all foreign nationals from buying residential properties, DiMichele clarified that several exceptions exist. For example, foreign buyers are allowed to purchase multi-unit buildings with four or more units, vacant land, or property in non-urban or recreational areas. Additionally, certain non-residents, such as international students and temporary workers, are permitted to buy property under specific criteria. The ban remains in place until January 2027.
Concluding Summary:
July 2025 marked a notable rebound in GTA home sales, reflecting better affordability and modest market tightening. Although prices remain lower than last year, stable monthly figures suggest growing buyer confidence. With interest rate reductions and foreign buyer exemptions potentially boosting activity, the housing sector could become a key driver in supporting the broader Canadian economy.


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