Toronto's Market Heats Up: July 2025 Real Estate Report

The Toronto real estate market is always a hot topic, and what happens there often provides a roadmap for nearby areas, including our own market here in Hamilton. The latest data for July 2025 reveals some surprising trends that are worth paying attention to, whether you're a buyer, seller, or simply keeping an eye on the market.

A Summer Surprise: Sales Are Back!

After a few quieter years, the Toronto real estate market saw a significant jolt of energy in July. The sales numbers are in, and they’re impressive: 6,100 sales were recorded, marking an almost 11% increase over the same month last year. In fact, this is the highest sales volume the city has seen since 2021. This isn't just a small blip; it's a clear signal that buyers are returning to the market with confidence, ready to make a move.

Prices are Shifting, Creating Opportunities

Despite the surge in sales, average prices actually softened a bit in July compared to earlier in 2025. This is a key point for anyone who felt priced out of the market previously. The slight decrease in prices is creating a more balanced and accessible environment. Here’s a quick look at the average prices for different property types:

• Detached Homes: Just under $1.6 million

• Semi-detached Homes: Around $1.25 million

• Townhouses: $920,000

• Condominiums: $684,000

For buyers, these numbers might feel a bit more approachable. For sellers, it underscores the importance of pricing your property strategically to attract serious offers right out of the gate.

Understanding the Inventory Story

When we look at the market, it's not just about sales; it's also about what’s available. In July, we saw both new and active listings increase. New listings were up 5.7% from last year, and active listings were up a substantial 26.2%. More choice for buyers is always a good thing.

However, a crucial metric for understanding market health is the "months of inventory." This tells us how long it would take to sell all the current properties on the market at the current sales pace. Interestingly, this number started to decrease in July. The reason behind this isn't necessarily a massive buying spree. Instead, it seems that many sellers who couldn’t sell in the busy spring market decided to take their properties off the market for the summer. This gives us a more nuanced view of the market—it’s active, but you need to understand the underlying trends to succeed.

A Golden Rule for Sellers: The First 30 Days

Perhaps the most important takeaway from the July data is a piece of advice every seller should hear. A staggering 68% of all successful sales in 2025 happened within the first 30 days of a property being listed. This highlights just how critical the initial marketing period is. After 60 days on the market, your chances of selling drop dramatically unless you make a significant price adjustment. This isn't a time to test the market with an inflated price. Getting the price right from the very beginning is the most powerful tool you have to get your property sold quickly and for a good value.

The Takeaway

The July 2025 market update for Toronto paints a picture of a renewed, yet sensible, real estate environment. While sales are up and buyer confidence is returning, a shift in pricing and inventory dynamics means that success for both buyers and sellers depends on a smart, data-driven approach. The lessons from this market can be applied across the region—strategy and clear-eyed analysis are key to navigating today’s real estate landscape.