Toronto Home Sales Rise in July as Prices Continue to Drop

Toronto home sales continued their rising trend in July, climbing 13 per cent over June as affordability improves.

 

There were 5,744 home sales in July, when taking seasonal influences into account, according to the Toronto Regional Real Estate Board. This continues an upward trend in sales that began in April, and marks the largest month-over-month increase so far in 2025.

 

The home price index, which excludes the most expensive transactions, dropped by 0.2 per cent from June to July on a seasonally adjusted basis, but that modest decrease is part of a steady decline from last year. The index is down 5.4 per cent from July, 2024.

 

In the city of Toronto, the composite index fell by 4.2 per cent year-over-year, while York Region led the decline in prices with an 8.5-per-cent drop.

 

The average selling price was down by 5.5 per cent across the Greater Toronto Area, from $1.13-million in July, 2024, to $1.05-million this past month.

“Improved affordability, brought about by lower home prices and borrowing costs, is starting to translate into increased home sales,” Elechia Barry-Sproule, Toronto Regional Real Estate Board president, said in a news release Wednesday.

 

“More relief is required, particularly where borrowing costs are concerned, but it’s clear that a growing number of households are finding affordable options for homeownership.”

 

The Bank of Canada recently held its policy interest rate at 2.75 per cent for the third consecutive time, offering little relief for homeowners preparing for mortgage-rate renewals.

 

The real estate board’s chief information officer, Jason Mercer, said interest-rate cuts “would spur home sales and see more spinoff expenditures,” which would boost the economy and job growth.

 

In Metro Vancouver, home sales fell 2 per cent in July compared with last year, according to the local real estate board.

 

About 17,000 homes are on the market, which “provides buyers plenty of selection to choose from,” said Andrew Lis, the Greater Vancouver Realtors director of economics and data analytics.

 

 

 

 

 

This article was first reported by The Globe and Mail