Published: June 19th, 2025 • Last Updated: June 19th, 2025
Author: Ross Taylor on AskRoss.ca

More Listings, Fewer Bidding Wars: Summer 2025 Is a Buyer’s Market

Every summer, I expect the Toronto real estate market to shift into its usual second gear, with families trying to get settled before the new school year, investors looking to close before fall, and buyers still chasing the leftover spring frenzy.

But this year? It’s a whole different vibe.

Homes are sitting longer. Open houses feel quiet. Bidding wars? Rare. And more listings are selling under asking than I’ve seen in years.

If you’re house hunting right now or trying to sell, you’ve probably felt the same thing: something fundamental has changed. This isn’t a seasonal lull. It’s a market reset.

I wrote about this shift in more depth in the spring about whether 2025 is the right time to buy in Toronto, and many of those themes are still playing out, but now with even more urgency.

So let’s dig into why so many homes are selling under asking this summer in Toronto, and what it means for both buyers and sellers.

Jump to a specific section in this article ↓↓

• Why are so many homes selling under asking in Toronto right now?
• How far under asking are homes selling this summer?
• What’s happening in the rest of Ontario—and across Canada?
• Is summer 2025 a good time to buy in Toronto?
• What should sellers do in this slower summer market?
• How long will this summer buyer’s market last?
• Advice From Ross Taylor Mortgages

For more info on what’s happening in our housing market across Canada, check out our recent article → Canada Housing Market 2025: City-by-City Summer Update

Why are so many homes selling under asking in Toronto right now?

There’s no single explanation; it’s a perfect storm of rising inventory, economic uncertainty, and a pullback in buyer urgency.

All of this adds up to one thing: a buyer’s market that has taken root and may not be going anywhere soon.

Inventory is up, and competition is down

This summer, we’re seeing a massive increase in available homes.

According to June 2025 data, the GTA has over 27,000 active listings, the highest for this time of year in decades. That’s more than a 50% jump from last year.

What happens when there are more homes on the market?

• Buyers stop rushing: they can take their time and weigh their options.

• Negotiation is back: buyers are submitting offers with conditions again.

• Sellers who price too high: They often watch their listings sit, untouched.

• Overpriced homes go stale quickly: The first weeks of listing are often the most crucial, and overpriced listings lose valuable early momentum.

Economic uncertainty is holding buyers back

The ongoing U.S.-led trade war continues to cast a shadow over our economy, and Canadians are noticing.

Jobs are at stake, paycheques are getting leaner, and confidence is shaky. It’s not the time most people feel like taking on a million-dollar mortgage.

Yes, the Bank of Canada has lowered its overnight rate to 2.75%, but it hasn’t triggered a flood of buying activity.

Instead, many would-be buyers are hesitating, worried about affordability, job security, and where the economy is heading next.

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How far under asking are homes selling this summer?

The discounts aren’t subtle. We’re talking tens of thousands off list price in some of the city’s most desirable neighbourhoods.

According to Bloomberg and Toronto Life, these are real examples of homes selling below asking price:

• A detached home in Riverdale sold nearly $100,000 under asking.
  
• A semi in Trinity Bellwoods went for $50,000 below listing.
  
• A duplex near Lake Ontario closed $60,000 under asking.
  
• A two-storey freehold row house near Casa Loma, listed at $1,349,000, sold for $1,265,000—$84,000 under asking.
  
• A red-brick Victorian in central Toronto, listed at $1,650,000, sold for $1,610,000—$40,000 below the list price.
  
• A stone-covered detached home in Forest Hill listed at $2,275,000 sold for $2,218,000—$57,000 under asking.

These aren’t tear-downs or listings with red flags. These are well-kept homes in sought-after neighbourhoods. But in this market, the power dynamic has shifted.

In May, 68% of homes in Toronto sold below asking price, more than in any June over the past decade.

For condos, the figure is even more dramatic: 78% of condos sold for less than the listing price. That means three out of four condo sellers didn’t get what they asked for.

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What’s happening in the rest of Ontario—and across Canada?

For more information on what’s happening in our cities across the country, check out our article here for the full breakdown: Canada Housing Update June 2025.

REGION	BELOW-ASK SALES PREVALENCE	MARKET CONDITIONS (MAY–JUNE 2025)
ONTARIO (OVERALL)	High	Market conditions mirror GTA, especially for condos
TORONTO/GTA	Very High (68–78%)	Strong buyer’s market, record inventory, low SNLR
VANCOUVER	Very High (Sales ratio 13.4%)	Deep buyer’s market, decade-low sales, price drops
CALGARY	Moderate	Balanced market, rising inventory, shifting dynamics
MONTREAL	Low	Seller’s market, rising prices, competitive conditions
OTTAWA	Balanced	Steady demand, stable prices, growing inventory
EDMONTON	Balanced/Mixed	Close to balanced, growing inventory
WINNEPEG	Low	Strongest seller's market in the country

Across the board, we’re seeing a Canada where local market conditions matter more than ever.

Some cities are cooling fast. Others are still red hot. And everyone’s watching what comes next on the trade and policy front.

Whether you’re buying or selling, it’s never been more important to understand your local market, not just the national headlines.

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Is summer 2025 a good time to buy in Toronto?

If you’re financially ready, this is one of the best buying windows we’ve seen in years.

Median and average prices have dropped, with the benchmark pricedown 5.4% year-over-year, now just over $1 million.

The sales-to-new-listings ratio (SNLR) is currently around30%, which is well below the level ofa balanced market.

This isn’t just a soft patch; it’s a textbook buyer’s market.

What smart buyers should focus on this summer:

Get pre-approved and stick to your budget

• A deal is only a deal if you can afford it long-term. Focus on monthly carrying costs, not just sticker price.

Be selective, but decisive

• With more inventory, you can shop around, but don’t get stuck in analysis paralysis. The best-priced homes still move.

Negotiate wisely

• Don’t be afraid to ask for conditions, price reductions, or repairs. Sellers are listening more than they were a few months ago.

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What should sellers do in this slower summer market?

If you’re selling right now, timing isn’t on your side. But with the right strategy, you can still come out ahead.

Three ways sellers can stay competitive this summer

1. Price realistically, right from the start

• Overpricing will kill your momentum. Your first-week window is everything. Miss it, and buyers will move on.

2. Make your listing shine

• Staging, minor repairs, and great photos still make a big difference. First impressions matter, especially in a buyer’s market.

3. Be open to negotiation

• Whether it’s price, closing date, or inclusions, a little flexibility can go a long way.

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How long will this summer buyer’s market last?

That’s the million-dollar question, and no one knows for sure. But here’s what I’m watching closely:

• More interest rate cuts are expected in the second half of the year
• TRREB forecasts a slow rebound in prices and sales volume by late 2025
• If the trade war deepens or recession concerns return, the buyer’s market could stick around longer
  

So if you’re buying, don’t wait for the “perfect” moment; this could already be it. And if you’re selling, adjusting early is the smartest play.

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Advice From Ross Taylor Mortgages

Summer 2025 has brought a rare and meaningful shift to Toronto’s housing market: we’re in a true buyer’s market. Listings are piling up, sales are slower, and asking prices are more of a suggestion than a target.

If you’re buying, this is your time to act strategically. More options, less pressure, and room to negotiate, it’s all there. But you still need to be financially prepared and focused.

If you’re selling, it’s time to adapt. This isn’t the market of 2021. Realistic pricing, sharp presentation, and flexibility are what will get your home sold this summer.

And if you’re not sure what your next move should be —buy, sell, or wait it out — let’s talk. I can help you cut through the noise and make a smart, confident decision in today’s market.

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