Toronto’s real estate market this August brought a mix of declining prices and rising sales activity. After months of slower conditions, August showed signs that buyers are beginning to re-engage, even as affordability concerns remain front and center.
Sales Activity: Momentum is Building
The big story in August was on the sales side. Toronto recorded 1,769 transactions, compared to 1,701 in August 2024. That’s a 3.6 percent increase in sales year-over-year, following the improvement we saw in July. This trend may be setting the stage for a busier fall market.
Detached Homes: Still the Softest Segment
Detached homes averaged $1,524,066 in August, down both month-over-month and year-over-year. This segment continues to feel the most pressure, as higher price points struggle against affordability challenges.
Semi-Detached Homes: Buyer Caution Prevails
Semi-detached homes averaged $1,131,498, posting notable declines compared to July and last year. Traditionally strong due to their location in established neighbourhoods, semis are now seeing slower demand as buyers hesitate to stretch their budgets.
Townhouses: Holding Their Ground
Townhouses averaged $915,511, making them the steadiest category this month. Prices are only slightly lower than July and actually a touch higher than last August. Townhomes remain appealing to buyers looking for more space than a condo without the cost of a detached.
Condos: Sensitive to Supply and Price
Condos averaged $667,660 in August, softer compared to both July and last year. With more inventory available downtown and midtown, buyers have plenty of choice and are negotiating aggressively.
What This Means for Buyers and Sellers
The August data paints a picture of a value-conscious market:
- Buyers are active, but selective, focusing on properties priced correctly.
- Sellers who overprice are finding their listings sit on the market.
- Townhouses continue to be a sweet spot, while detached homes remain under the most pressure.
Looking Ahead: A Fall Market Test
As we move into September, the key question is whether this increase in sales activity will carry forward. If it does, Toronto could be heading toward a more balanced market with steady transactions, even as affordability challenges persist.
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