Toronto’s housing market may finally be finding its footing.From shifting prices to early stabilization signals, October hinted at a market adjusting under pressure.
Introduction
Quiet Resistance
Market Report
October 2025
RARE’s Economic Research Department meticulously examines TREB’s monthly data releases, distilling them into an easily digestible and insightful format within our market report.
Key Developments
In October, Toronto’s housing market showed early signs of stabilizing. Sales rose but remained below historical averages, while new listings and active inventory declined, yet stayed elevated. Market balance indicators improved slightly but continued to signal softness, with all key price metrics edging lower. The rental market was largely steady, and average rents inched higher. In new construction, monthly sales improved modestly, housing starts rebounded, and completions dipped slightly but remained above annual norms. Mortgage rates eased, aiding housing affordability, while unemployment and arrears held largely steady. Overall, the market balanced ample supply with subdued demand, showing early signs of stabilizing conditions.
Sales Increased, but Edged Lower After Seasonal Adjustment
Toronto Metro sales rose to 6,138 in October, up 10% month-over-month, down 8% year-over-year, and 19% below the 10-year average. After seasonal adjustment, sales fell 2%. Activity typically eases from May through January, though October often sees a slight uptick.
New Listings Declined Yet Remained Historically Elevated
New listings fell to 16,069 in October, down 17% month-over-month but up 5% year-over-year, and 14% above the 10-year average. This marked the highest October level since at least 2006, excluding the pandemic years. The decline reflects normal seasonal trends, as activity typically slows from May through January except for September’s uptick.