GTA Home Prices Sink Below $1M Benchmark: What It Means for Buyers & Investors

This June, a milestone moment happened in the Greater Toronto Area (GTA): the MLS® benchmark home price slipped to approximately $995,100, marking the first time the figure has fallen below the $1 million threshold since March 2021 . Let’s unpack why this matters—and what it means for both homebuyers and investors.

📉 June Snapshot: A Buyers’ Market in Full Swing

  • Benchmark price: ~$995,100 — a 1.7% monthly decline and a 5.5% drop year-over-year

  • Average sale price: ~$1,101,691, down 5.2% year-over-year

  • New listings: ~19,839 in June, up ~10–14% from last year

  • Inventory volume: ~31,603 active listings—the highest level seen in 30 years, increasing about 31% year-over-year

  • Sales-to-new-listings ratio (SNLR): ~32%, signaling a clear buyers’ market (below the 40% balance threshold)

These metrics paint a solid picture: supply outweighs demand, giving shoppers more choice, more leverage, and more time to negotiate.

Why the $1 M Benchmark Matters

  1. Psychological turning point
    Breaking the million-dollar barrier resets buyer expectations. Homes once pegged at “over‑$1 M” are now perceived as more attainable, even if price cuts are modest.

  2. Media narrative & sentiment
    Headlines shouting “below $1 M” can attract cautious, wavering buyers, especially those on the cusp of affordability.

  3. Affordability gains
    Even a 5–6% dip materially eases the financial burden: lower down payments, smaller stress test obligations, and reduced monthly payments.

The Affordability Angle: Real Gains for Real Buyers

Thanks to both falling prices and cooling mortgage rates, housing is becoming incrementally more affordable. The Bank of Canada has cut its key rate by around 2.25 percentage points since June 2024 , lowering five‑year fixed mortgage rates by roughly 90 basis points in Q1 2025 k. Meanwhile, incomes climbed modestly—by ~0.8%—during the same time r Together, these shifts have eased the ratio of mortgage payment to income in Toronto and across other markets

Buyer Benefits: Time to Act Strategically

  • More Negotiating Power: With inventory high and demand subdued, buyers can negotiate below asking prices—typically around 98% of list price, versus full price during hotter markets

  • Room to Shop Smart: Increased supply allows buyers to be choosier—neighbourhoods, layouts, schools—all while retaining leverage.

  • Better Timing with Rates: Even modest rate drops can cut mortgage costs substantially. Buyers with pre-approval can lock competitive rates and act quickly on favorable listings.

Investor Outlook: Opportunistic but Cautious

For investors, the current market holds both promise and caution:

  • Short‑term Rentals: A softening condo market (down ~8% year-over-year in Toronto) combined with declines in rent (~5% drop YoY) signals a cooling rental environment

  • Long‑term Appreciation: Over the long haul, the GTA remains attractive—limited land, robust immigration, and a diverse economy hint at future gains once buyer sentiment normalizes

  • Cap Rate Improvement: Softer prices boost potential cap rates, but investors must weigh this against rental income trends and rising costs of holding property.

  • Watch the Macro: Investor confidence ties closely to macro factors—U.S.–Canada trade dynamics and Bank of Canada rate decisions could tip the scales

Key Risks on the Horizon

  • Economic uncertainty: A shaky trade deal or global slowdown could stall recovery.

  • Rates stuck high: Further easing depends on inflation trends and labour market conditions.

  • Policy shifts: Provincial or municipal moves on development, taxes, or zoning could reshape supply and affordability dynamics.

Final Take

Buyers: Now is a prime window to enter. Greater choice, pathways to negotiate, and better financing conditions mean serious discounts—and serious opportunity.
Investors: The pause in prices opens up acquisition opportunities, especially for long-term hold or income strategy. But due diligence around rental yields and broader economic signals remains vital.

The million-dollar mark isn’t just a figure—it’s a market signal. It reflects a rebalancing that favors buyers, tightens competition among sellers, and invites strategic investors. For anyone eyeing the GTA, June 2025’s dip represents both a moment to act and a reminder: understanding market context today means unlocking opportunities tomorrow.

BlogAlex Wilson