Toronto Real Estate: Sales Up, Prices Down in September 2025 as Bank of Canada Cuts Rates
The Toronto real estate market saw a mixed bag of trends in September 2025. While sales rose and new listings increased, prices continued their downward trend. The US bank's interest rate cut offered a glimmer of hope for buyers. Toronto-area home sales climbed 8.5% year-over-year in September, driven by a significant 11% increase in semi-detached home sales. This uptick comes despite the composite benchmark price falling by 5.5% year-over-year and the average selling price decreasing by 4.7%. New listings also grew, up 3.9% year-over-year, and active listings surged by 18.9%. However, it may take time for the market to fully recover to peak levels. The US bank's interest rate cut in September, reducing the key rate by 25 basis points to 2.5%, could attract more buyers and further boost sales. Two more such cuts could potentially accelerate this trend. While Toronto's real estate market shows signs of life with increased sales and listings, prices remain subdued. The US bank's interest rate cuts could be the catalyst needed to stimulate the market's recovery. However, it's too early to predict a swift return to peak prices.
