GTA Home Sales Rise in September as Buyers Respond to Lower Borrowing Costs

Home sales in the Greater Toronto Area (GTA) rose in September 2025 compared to the same period last year, as more buyers entered the market, encouraged by more affordable monthly mortgage payments. With a wide range of housing options available, buyers were able to negotiate lower prices, leading to a decline in the average selling price.

“The Bank of Canada’s September interest rate cut was welcome news for homebuyers,”

said Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule.

“With reduced borrowing costs, more households can now afford mortgage payments on homes that meet their needs. This uptick in home purchases also supports the broader economy through increased housing-related spending, helping to counteract ongoing trade challenges.”

GTA REALTORS® reported 5,592 home sales through TRREB’s MLS® System in September 2025, marking an 8.5% increase over September 2024. New listings also saw a modest rise, totaling 19,260 — up 4% year-over-year.

On a seasonally adjusted basis, home sales increased from August to September 2025, while new listings declined. This shift suggests that market conditions may be tightening in certain segments, potentially leading to increased competition among buyers.

The MLS® Home Price Index (HPI) Composite benchmark fell 5.5% year-over-year in September. The average selling price was $1,059,377 — down 4.7% from September 2024. However, on a month-over-month seasonally adjusted basis, the HPI dipped only slightly by 0.5%, while the average selling price remained relatively stable, inching up 0.2%.

“Although home sales have picked up compared to last year, they still remain below typical levels given the size of the GTA’s population,”

said TRREB Chief Market Analyst Jason Mercer.

“Two additional 25-basis-point rate cuts by the Bank of Canada could help bring monthly mortgage payments more in line with average incomes, further supporting homeownership and driving economic growth.”

TRREB CEO John DiMichele emphasized the need for greater collaboration within the housing sector:

“Industry stakeholders have often worked in isolation toward similar goals, but progress has stalled. With new construction sales and housing starts in decline, it’s time to unite as a single voice. TRREB is committed to engaging with industry leaders, policymakers, and other stakeholders across the Greater Golden Horseshoe to reignite momentum and overcome the remaining barriers to housing development.”