June Real Estate Rebound in Toronto Signals Sustained Market Activity and Buyer Interest
Toronto’s housing market showed signs of rebounding in June, with home sales up for the fourth straight month and prices increasing for the first time in more than a year.
There were 5,404 transactions last month, according to the Toronto Regional Real Estate Board, or TRREB. That was 1.4 per cent higher than May sales, after adjusting for seasonal influences, and marked the fourth month of increased activity.
The home price index, which removes the most expensive transactions, was $930,800 in June. That was 0.3 per cent higher than the previous month, and the first time that prices increased since the period of April to May, 2025.
TRREB attributed the higher activity in part to pent-up demand from would-be buyers.
Since 2022, buyers have been faced with relatively expensive mortgage rates, and economic uncertainty from the trade dispute with the U.S. and the more recent Middle East war.
Although mortgage rates continue to be more expensive compared to the pandemic’s real-estate frenzy, home prices had been mostly declining for about four years. The lower prices and the lack of competition has made it easier for buyers to purchase a property.
Compared to a year ago, the home price index is 5 per cent lower, with many of the areas near Toronto experiencing greater declines.
In Peel Region, to the west of the city, the home price index was down 6.4 per cent year-over-year.
In York Region, north of the city, the index declined by 7.3 per cent over the same period. In Durham, to the east, the home price index decreased by 5.4 per cent. In comparison, Toronto was down by 4.3 per cent.
Condos have lost the most value as a record number of new units flood a market already saturated with them.
Across the Toronto region, the home price index for condos declined by 8.2 per cent year-over-year. In comparison, detached houses lost 5.3 per cent.
TRREB warned that competition could pick up in the latter half of this year. The number of homeowners putting their properties up for sale has been decreasing. New listings fell 3.8 per cent from May to June, and are down 16 per cent year-over-year.
The board said that if competition increased, home prices would also start to rise.
It is too early to say that the market has rebounded. The volume of sales last month was 38 per cent below the 10-year average for June, according to TRREB’s chief information officer Jason Mercer.
This article was first reported by The Globe and Mail
