Toronto Real Estate Market Update: Strong July Sales and August Trends

Happy mid-August, everyone!😊

July was a surprisingly strong month for the Toronto real estate market. The Greater Toronto Area saw over 6,100 homes sell, marking a 10.9% increase year-over-year and the best July we’ve had since 2021. New listings were up by nearly 6%, and even active inventory climbed 26% compared to last year.

Prices softened a bit, with the average sale price dipping to about $1.05 million, down 5.5% year-over-year, reflecting a market that's balancing demand with more options for buyers.

What’s Happening in August?

As of today, there are 3,932 freehold homes listed across the C, E, and W districts of TRREB MLS. This is part of the ongoing trend of inventory shedding we’ve been seeing since late May.

Last week, 337 freehold homes were newly listed — an unusually high number given the summer holiday distractions. Sales slowed somewhat, with 102 homes sold and 30% of those going at or above list price. With many buyers away enjoying the summer, fewer sales were expected — but the fact that nearly one in three sold above asking shows confidence remains strong.

The Bank of Canada’s decision to hold interest rates steady since March — with no new announcement expected until late September — appears to be giving buyers the confidence to make offers on homes they really want.

Breaking Down the Competition by Price Range

• Under $1 million: 26% sold above asking

• $1–2 million: 35% sold above asking

• $2–3 million: 40% sold above asking — the hottest segment right now

• Above $3 million: 0% sold above asking

Condos: Following the Freehold Lead

Condo sales last week mirrored freehold activity with 108 sales, and 23% selling over asking price. The uptick is driven by some sellers pricing aggressively below market value to spark competition — a risky move in the current buyer’s market for condos, given the substantial inventory. Still, the increased sales activity is a positive sign.

The Takeaway

July’s strong performance set a solid tone, but the seasonal slowdown in August is typical and expected to continue until September. Stable mortgage rates, steady buyer interest in key price ranges, and a bit of seasonal pause all paint a picture of a market that’s balanced — no wild swings, just steady footing.

Questions? Please reach out!   Michael@cambridgerealtygroup.ca  Gillian@cambridgerealtygroup.ca