Toronto’s housing market continued to shift in July, with a trend that’s becoming more defined — prices are softening, but sales activity is on the rise. It’s a combination that tells a more layered story than the headlines might suggest.
Buyer Activity Is Picking Up
One of the standout stats this month is the increase in buyer activity. In July 2025, there were 2,186 transactions in the 416 area — up from 1,970 in July 2024. That’s an 11% year-over-year increase. Even though buyers are more cautious and price-sensitive, they’re still making moves when the right opportunities appear. The takeaway? This isn’t a frozen market. It’s a more balanced one, where buyers have more leverage and are using it wisely.
Detached Home Prices Ease Again
The average price for detached homes in Toronto was $1,572,832, down 4.2% from June and 4.6% from last year. This segment has seen one of the most consistent slowdowns since spring, with pricing rolling back from earlier highs.
Semi-Detached Homes Show Resilience
Semi-detached homes averaged $1,242,388 in July. That’s a 2.8% drop month-over-month, but only a 1% decline compared to last year. The smaller annual decrease points to steady demand, especially in established neighbourhoods where this housing type remains popular due to its relative affordability.
Townhouses: The Middle Ground Is Shifting Too
Townhouses saw an average price of $920,197, down 3.9% from June and 5.2% from July 2024. This segment typically attracts buyers looking for more space than a condo but without the cost of a detached house. Even so, we’re seeing softening here too, likely driven by increased options and buyer caution.
Condos See the Largest Year-Over-Year Drop
Condo prices averaged $684,257, representing a 6.4% decline from June and a sharp 8.6% decrease from last year. That’s the steepest drop of any housing type in the city.
What This All Means for the Market
Every property type saw both monthly and annual price declines, which points to more than just seasonal variation. We’re seeing a broader cooling trend, driven by a combination of higher inventory, interest rate sensitivity, and economic uncertainty.
Yet, the increase in sales tells us that demand is still very much alive. Buyers are being more selective, but they’re active — especially when a home is priced right. If this trend continues, Toronto may settle into a healthier, more stable rhythm through the second half of 2025.
Looking Ahead
We’ll be keeping a close eye on how this trend plays out in August. Will buyer activity continue to climb? Will prices keep easing? Check back next month for the full breakdown and stay ahead of the market.
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