Toronto Home Prices See Ninth Straight Month of Decline — Could the Market Be Nearing the Bottom?

The Toronto real estate market continues to adjust, with prices dropping for the ninth consecutive month — now sitting about 21% below the 2022 peak. According to the Toronto Regional Real Estate Board (TRREB), this marks the most significant downturn since the 1990s.

As of October, the average home price across the GTA sits at $1.054 million, roughly 7% lower than the same time last year. “People who are actively looking to purchase a home in today’s market are benefitting from a lot of negotiating power, and with negotiating power comes lower prices generally,” said TRREB’s Chief Information Officer, Jason Mercer.

Sales are also down nearly 9.5% year-over-year, with 6,138 homes sold in October. Meanwhile, new listings rose 2.7%, bringing more choice to buyers who are taking their time and weighing their options.

“It’s a continuation of the trend we’ve seen play out for most of the year,” Mercer explained. “Whether sales have been up or down on sort of a monthly basis, sales remain low in comparison to available inventory.”

The drop isn’t limited to small condos. Detached and semi-detached homes have seen the sharpest declines since early 2022.

• Detached homes: Down about 25%, now averaging $1,355,506
• Semi-detached homes: Down 24%, now at $1,033,770
• Condos: Down around 18% across the region, averaging $660,208

The most significant year-over-year dips include:

• 416 townhomes, down 14%
• 905-area condos, down 10%
• 416 detached homes, down about 9%

When asked if this represents a market crash, Mercer said prices are simply responding to reduced affordability. “As we move into 2026, if we see more certainty around where the overall economy is headed, you’re going to see a greater number of households that are willing to come off the sidelines and move back into the marketplace,” he said, “to take advantage of what’s become a much more affordable housing market situation over the last 12 months.”

The Bank of Canada’s late-October rate cut — lowering its key interest rate to 2.25% — may provide some relief and spark renewed activity.

As for whether prices could fall further, Mercer noted that the market may be nearing a turning point. “We’re getting closer to that with the interest rate cuts we’ve seen and with the price declines that we’ve seen so far this year,” he said. “The average mortgage payment for a home in the GTA has moved closer to the average household income, and I think that’s the inflection point where we’ll start to see a real pickup in sales.”

Source: May Warren, “Toronto-area home prices tumble for ninth straight month in worst downturn since the ‘90s,” Toronto Star, November 5, 2025.

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