Toronto Real Estate Market Update – August 2025

What’s happening in the market, and what it means for homeowners and renovators

Navigating the Toronto real estate market: A buyer's comedic reaction to current house prices.

As we move through the second half of 2025, Toronto’s real estate market is showing signs of balance. July saw a slight dip in overall home sales, largely due to persistent interest rate pressure. But unlike previous years where that might trigger a drop in prices, average home values across the GTA have remained fairly stable.

Detached Homes Still in Demand

Detached homes in the 905 area continue to see modest price growth. Families looking for more space—and value—are driving this demand. If you already own a detached home and are considering a renovation or addition, now could be a smart time to invest in upgrading your space rather than entering a competitive buying market.

More Listings, More Choices

One bright spot for buyers: inventory is improving. More listings on the market means less pressure and more room to negotiate, especially for those seeking move-in-ready homes. However, high-quality homes that are well-designed and properly permitted are still moving quickly, which shows that smart renovations continue to pay off.

Downtown Condos Regaining Momentum

Condos, especially in downtown Toronto, are seeing renewed interest—particularly units priced under $700,000. Young professionals and investors are returning to the core, drawn by the convenience and lifestyle options urban living offers.

What This Means for You

For homeowners thinking about renovating or building, the current market conditions offer a unique window. With buyer activity steady but not frantic, there’s less rush—but strong demand remains for homes that are thoughtfully designed, energy-efficient, and fully permitted.

At Cadaxx Design, we specialize in helping you unlock the full potential of your home—whether that means a basement apartment for extra income, a full custom build, or a stylish interior renovation. We handle everything from zoning reviews to permit applications and detailed construction drawings.

Thinking about making a change to your home this year?Let’s talk. A smart design today can add significant value tomorrow.