The aggregate price of a home in the GTA decreased by three per cent in the second quarter of this year compared to the second quarter of 2024, but prices could increase by the end of the year, a new report says.
In quarter two of 2025, the aggregate price of GTA homes was $1,155,300, a decline from one year prior but 0.8 per cent more than in the first quarter, according to Royal LePage’s second quarter 2025 Home Price Update and Market Forecast.
Aggregate prices are calculated using a weighted average of the median values of all housing-type transactions in the region, the report says.
Condos saw a significant price drop; median prices decreased 5.6 per cent year-over-year to $699,700, while single-family home prices decreased 1.2 per cent to $1,448,700.
While real estate activity has historically increased in the spring, many buyers decided to wait at the start of this year, said GTA-focused broker Shawn Zigelstein.
“We had so much economic uncertainty coming into 2025,” said Zigelstein, pointing to the Canadian and U.S. federal elections, new tariffs and potential job losses.
Concerns from buyers may have stalled the market, Zigelstein said.
“That was the biggest difference we saw: a lot of people sitting on the sidelines waiting to see what happens and always asking the question ‘how is this going to affect me?’”
Buyers are being “patient,” rather than rushing to make offers on homes, he added.
Royal LePage expects prices in the region to rise two per cent year-over-year in the fourth quarter of 2025.
While there’s still uncertainty around tariffs, Zigelstein said buyers may be better informed now about the situation in the U.S. and Canada and will be able to make a “better judgement call” about purchasing.
Additionally, homeownership is becoming more realistic for first-time homebuyers with lower prices and lower interest rates than last year, Zigelstein explained.
The report also highlighted a recent Royal LePage survey conducted by communications agency Burson, which found 28 per cent of Canadian renters said they considered buying a property before signing or renewing their current lease.
As these renters move into homeownership, Zigelstein said he believes there will be more sales in lower-priced properties.
“We are starting to see increased traffic across listings throughout the entire GTA when it comes to townhouses, semi-detached homes and small detached homes,” he said. “You’re starting to see that volume of showings increase substantially from where it was even just a couple of months ago.”
Meanwhile, in the City of Toronto, home prices dropped 5.2 per cent year-over-year to $1,151,600. Home prices overall, however, were steady across the country, rising 0.3 per cent year-over-year to $826,400.
Of the markets that saw prices decline, most were in Ontario, the report said, while Quebec led the country in price growth with a 13.5 per cent increase year-over-year.
Markets outside of Ontario may have experienced more activity due to affordability, Zigelstein added.
“The affordability there is so much greater that people can start to get into (homeownership) with much less down.”
