The luxury resale segment in the GTA — defined as homes priced at CA$3 million and above — slipped markedly in the third quarter of 2025. Sales of these luxury homes fell approximately 15 % year-over-year, from 376 units in Q3 2024 to 321 in Q3 2025. Additionally, compared with the second quarter of 2025 (388 sales), the drop was about 17 %.

Interestingly, despite the overall decline, high-end activity remains concentrated in Toronto’s "established" luxury neighbourhoods. Of the 22 GTA neighbourhoods which recorded at least five luxury home sales in Q3 2025, 14 of them were in the City of Toronto proper. These include areas such as Lawrence Park, Forest Hill, Rosedale, Yorkville and Ledbury Park.

These data suggest two contrasting phenomena: a cooling of the upper-end market overall in the GTA, but a degree of resilience in the most desirable enclaves. For sellers in the luxury segment, the caution is that the pool of buyers is smaller and competition among sellers may become tougher. For buyers, this may present opportunities previously restricted to more aggressive bidding.

Another layer: the slowdown in luxury sales may reflect broader affordability headwinds — high interest rates, tight lending, and a general caution among wealthy buyers — as well as a potential shift in investor strategy (or timing) in the high-end home market.

Going forward, market watchers suggest the luxury segment may see continued moderation, unless there is a meaningful drop in interest rates or renewed confidence among top-tier buyers. For now, it appears to be a “buyer’s window” in luxury for those able to participate.