July 2025 Market Outlook

If you’re considering downsizing from a larger home to a smaller one in the Greater Toronto Area, the latest TRREB housing market data for June 2025 offers several important insights that can help guide your decisions.

Market Overview for Downsizers:

 More Choices for Sellers and Buyers: The number of new property listings rose by 7.7% year-over-year, reaching 19,839 in June 2025. This means there are more homes on the market, giving you a wider selection of smaller properties to choose from as you look to downsize. At the same time, if you’re selling a larger home, you’ll be competing with more listings, so strategic pricing and presentation are key.

 Softer Prices: The average selling price in June 2025 was $1,101,691, which is down 5.4% compared to June 2024. The MLS® Home Price Index Composite benchmark also dropped by 5.5% year-over-year. For downsizers, this means you may not get last year’s peak price for your larger home, but you’ll also benefit from lower prices when purchasing a smaller property.

 Negotiation Power: With increased inventory and buyers still cautious due to economic uncertainty, there’s more room to negotiate. Buyers are taking advantage of this by securing discounts off asking prices. As a seller, be prepared for offers below your list price, but as a buyer, you can use this environment to your advantage when purchasing your next, smaller home.

 Affordability Improving: Lower average selling prices and borrowing costs compared to last year are making homeownership more attainable. If you’re moving to a smaller property, your mortgage and carrying costs could be lower than expected, easing your transition and potentially freeing up equity for other purposes.

 Market Activity: June saw 6,243 home sales, a 2.4% decrease from the previous year. However, sales did rise month-over-month, while new listings declined compared to May, indicating a tightening market as the spring progressed. This could mean that while options are plentiful now, competition for desirable smaller homes may increase as the year goes on.

Key Takeaways for Downsizers:

 You’ll likely sell your larger home for less than last year’s prices, but you’ll also pay less for your new, smaller home.

 More listings mean more options and negotiating power, but also more competition among sellers.

 Lower borrowing costs and improved affordability can make the downsizing process smoother and financially advantageous.

These trends suggest that now is a favourable time to downsize, especially if you’re looking to maximize your choice of smaller homes and take advantage of improved affordability in the GTA housing market.