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Toronto’s June 2025 real estate statistics tell a story of cautious optimism: the market is showing genuine signs of recovery after months of uncertainty. While buyers remain selective, the spring momentum that began in April has carried through to June, creating the best market conditions we’ve seen in over a year.
The Big Picture: Recovery in Motion
Let’s start with the encouraging news. On a seasonally adjusted basis, June home sales increased month-over-month compared to May 2025—marking the continuation of a tightening trend that began during the spring. Sales held steady at 6,243 homes (compared to 6,244 in May), while new listings actually declined month-over-month, creating better supply-demand balance.
Year-over-year, sales were down just 2.4% (6,243 vs 6,397 in June 2024), a much smaller decline than we saw earlier in the year. New listings increased 7.7% year-over-year, giving buyers more choice, but the month-over-month decline signals the market is finding its footing.
Translation: The spring recovery is real, and market conditions are gradually improving for both buyers and sellers.
Detached Homes Leading the Recovery
When we break down the numbers by property type, detached homes are leading the recovery:
Detached homes are the only segment showing year-over-year sales growth, albeit modest. This suggests move-up buyers with substantial equity are taking advantage of improved affordability conditions. Semi-detached homes showed price stability with just a 1% decline.
The 416 vs 905 Story: Urban Core Outperforms
Toronto proper continues to show more resilience than the surrounding suburbs:
The 416 area actually posted positive sales growth (+0.4%) while prices held up better than the suburbs. This urban resilience likely reflects the area’s diverse economy, transit accessibility, and appeal to buyers who prioritize convenience over space.
Toronto Sub-Markets: Central Leading the Charge
Breaking down Toronto by area shows Central Toronto driving the recovery:
Toronto Central posted solid 2.1% sales growth year-over-year, with the smallest price decline of any area. This downtown strength reflects the appeal of walkable neighbourhoods, transit access, and the return of urban amenities post-pandemic.
The Condo Market: Navigating Headwinds
While the broader market shows recovery signs, the condo segment faces unique challenges that both buyers and sellers need to understand.
Overall Condo Performance
Condos are taking significantly longer to sell—nearly two months on average compared to five weeks last year. This represents the most dramatic timing increase of any property type, signaling genuine buyer hesitancy in this segment.
Toronto Condo Sub-Markets Tell Different Stories
Breaking down condo performance by Toronto area reveals stark differences:
Toronto Central, where condo living dominates, absorbed 2,460 sales but sits on a massive 4,690 active listings—creating intense competition for sellers. This downtown inventory buildup reflects both new construction deliveries and existing owners testing the market.
Toronto West and East show more balanced inventory levels relative to sales, suggesting neighbourhood-specific dynamics may be at play.
Condo Market Outlook
While the condo market’s recovery will lag the broader market, Toronto’s fundamentals—population growth, employment concentration, and lifestyle preferences—support long-term condo demand.
For condo buyers: This is a rare opportunity to be selective about buildings, units, and pricing. Take advantage of reduced competition and longer decision timelines.
For condo sellers: Price realistically, highlight building strengths, and be prepared for a longer sales process. Properties that stand out in terms of value, condition, or building quality will still find buyers.
Market Timing: Still Favours Buyers
Properties are taking longer to sell than last year, but this creates opportunities rather than problems. To understand the timing, there are two key metrics to watch:
Listing Days on Market (LDOM): How long the current listing was active
Property Days on Market (PDOM): Total time on market, including previous listings
Year-Over-Year Comparison: June 2025 vs June 2024
Month-Over-Month Progress: June 2025 vs May 202
The recovery story: While properties are taking longer to sell than in June 2024, the month-over-month data reveals improvement. Listing DOM improved slightly from May to June (27 to 26 days), and more importantly, Property DOM increased only modestly (39 to 42 days), suggesting fewer properties are getting stuck in multiple listing cycles.
The gap between Listing DOM and Property DOM shows that many sellers are having to adjust their approach—whether through price reductions, re-staging, or strategy changes. However, this gap is narrowing compared to earlier in the year.
What this means: Current listings are moving at a reasonable pace (26 days), and the total property timeline (42 days) is stabilizing. Buyers have time for proper due diligence, while sellers who price realistically from day one are seeing faster results.
Supply and Demand: Finding Balance
Active listings reached 31,603 properties (up 30.8% year-over-year), providing substantial choice for buyers. However, the month-over-month decline in new listings and increase in sales suggests the market is tightening from its oversupplied state.
For buyers: You still have excellent choice and negotiating power, but don’t assume this will last indefinitely.
For sellers: Competition exists, but the spring momentum suggests motivated buyers are returning to the market.
What’s Driving the Recovery?
Several positive forces are converging:
- Affordability Improvements: Lower prices plus rate cuts are improving monthly carrying costs compared to 2024.
- Buyer Confidence: The spring momentum suggests economic uncertainty is gradually giving way to cautious optimism.
- Seasonal Patterns: June’s performance builds on April and May improvements, suggesting sustainable rather than temporary gains.
- Supply-Demand Rebalancing: While inventory remains elevated year-over-year, month-over-month trends show market conditions tightening.
What Does This Mean For You?
For Sellers
The market is improving but requires strategy:
- Price competitively from day one. While conditions are improving, overpricing still kills momentum
- Prepare your property well. Competition is everywhere so presentation matters
- Time your listing wisely. Momentum is building, but act while buyer interest is growing
- Be realistic about timeline. 6-8 weeks to sell is normal in a balanced market
For Buyers
You’re still in a strong position, but act thoughtfully:
- Take advantage of choice and negotiating power while it exists
- Don’t wait for perfect conditions. Recovery signs suggest increased competition ahead
- Focus on fundamentals. Buy for your needs, not market timing
- Factor in total costs. Compare monthly payments, not just purchase prices
For Current Homeowners
The recovery has implications:
- Equity erosion is slowing. Price declines are moderating across most segments
- Refinancing opportunities exist with lower rates than peak levels
- Home improvements make more sense in a recovering market
Looking Ahead
TRREB’s 2025 forecasts projected 76,000 sales and an average price of $1,147,000. While we’re tracking below the sales target (30,967 year-to-date vs. 36,586 last year), the spring recovery suggests the second half could be stronger.
The key question isn’t whether the market is recovering—June’s data confirms it is. The question is whether this momentum can be sustained through the traditional summer slowdown and into fall.
The BREL Bottom Line
June 2025 delivered what the market needed: concrete evidence that the spring recovery has staying power. Sales momentum continued, inventory growth moderated, and key segments like detached homes and Central Toronto showed outright strength.
This isn’t a return to the frenzied conditions of 2021-2022, nor should it be. Instead, we’re seeing the emergence of a more balanced, sustainable market where buyers have choice and sellers with realistic expectations can succeed.
If you’re a buyer who’s been waiting for the “right” conditions, they’re here. If you’re a seller, the improving momentum suggests opportunity—but only with proper preparation and pricing.
The Toronto market is finding its equilibrium after years of extremes. That’s good news for everyone.
Looking for neighbourhood-specific insights or a detailed analysis of your property’s value? The spring recovery isn’t uniform across all areas and price points. Understanding your specific market dynamics is crucial for making informed decisions. We’re here when you need us!
