Toronto home sales rise as buyers gain bargaining power

Toronto’s housing market showed signs of renewed life in June, as the number of homes for sale reached a historic high while sales edged higher. By the end of the month, active listings in the Greater Toronto Area climbed to 31,603 properties, a rise of 30.8 per cent from June 2024 and the highest level seen since tracking began in 2002. This surge in listings gave buyers plenty of choices and fresh leverage in price talks.

Home sales showed modest improvement, too. Although the total number of homes sold, 6,243, was 2.4 per cent lower than a year earlier, it did inch up compared with May when adjusted for seasonal factors. From another angle, sales rose 8.1 per cent from May in seasonally adjusted results, marking the third straight month of gains and the strongest monthly sell-through since January.

With more homes listed and buyers back in the driver’s seat, prices moved lower. The average selling price fell 5.4 per cent year over year to about \$1,101,691, while the MLS Home Price Index Composite benchmark dropped 5.5 per cent. This reflected growing negotiating room for buyers, who could ask for and often receive discounts off asking prices, especially given lower borrowing costs compared to last year.

Economic uncertainty, especially around U.S. and Canada tariffs, continued to influence the market. While buyers gained power, many stayed cautious. Real estate officials noted that a firm trade agreement and further rate cuts could further stimulate sales and boost confidence, potentially easing the market’s hesitation.

Properties also spent more time on the market, creating opportunity for careful buyers. On average, listings took about 26 days to sell in June, up from about 20 days in the same month last year, with total time on market rising too from around 30 to 42 days. While it means sellers may need better pricing and strategy, it also gives buyers the breathing room to make informed decisions.

Overall, June’s snapshot suggests a shifting Toronto housing market. Buyers enjoyed more bargaining power as supply swelled and prices eased. Sellers faced tougher competition, but those who priced smartly and presented well still found success. As the market moves into summer, the key will be whether rising buyer interest can continue to match elevated inventory and whether economic signals like trade talks or rate moves can spark more confidence.