As Toronto’s real estate market faces a downturn, these neighbourhoods are standing strong.

As Toronto’s housing market experiences a downturn, a handful of neighbourhoods are standing out by going against the grain, according to a new report based on Toronto Regional Real Estate Board (TRREB) data spanning January through the end of June 2025.

Toronto’s 416 area code showed the most signs of recovery, with just over 34% of neighbourhoods showing stable or upward movement in the detached housing segment, the report stated.

A number of these resilient “hot pocket” areas are benefitting from factors such as improved affordability, family-oriented features, and enhanced transit access.

Although the report emphasized that most markets are still trailing 2024 price levels, it also highlighted several neighbourhoods where median home values have increased year-over-year.

One west-end Toronto area — including Rockcliffe-Smythe, Keelesdale-Eglinton West, Caledonia-Fairbank, Corso Italia-Davenport, and Weston-Pelham Park — saw a 6.2% increase in median price from last year ($1,102,706 compared to $1,038,548).

Another notable uptick came from high-end properties in Bridle Path-Sunnybrook-York Mills and St. Andrew-Windfields, where median prices climbed 11.5% to over $4.6 million.

More moderate price growth was seen in several east Toronto districts like South Riverdale, Greenwood-Coxwell, Blake-Jones, and North Riverdale, where the median price rose by 1.7% compared to this point in 2024.

Fresh numbers from TRREB, released earlier this month, revealed that the average selling price across the GTA dipped 5.4% in June year-over-year, landing at $1,101,691.

Low inventory in central Toronto — especially for homes in more attainable price ranges — is helping to support price increases in the detached segment.

Neighbourhoods leading the way in year-over-year sales growth included Yonge-St. Clair, Casa Loma, Wychwood, and the Annex, with a 31% rise in activity.

On the east side of the city, five neighbourhoods saw steady or increasing sales, including the Beaches, Woodbine Corridor, and East-End Danforth — all up 27%.

In Toronto’s west end, three neighbourhoods matched or exceeded last year’s numbers: South Parkdale, Roncesvalles, and High Park-Swansea.

Within the GTA, the report also pointed to strong interest in homes priced between $850,000 and $1.2 million, especially in “key micro-markets,” where properties are moving quickly.

While overall GTA home sales are still down compared to last year, demand for detached properties is helping to buoy the market.

Recent weeks have seen first-time buyers playing a bigger role in the detached space, encouraged by the average price increase recorded in May — and driven by the belief that the window to get in before further price increases is narrowing. 

Buyer activity appears to be intensifying, with more property views, showings, and offers — though many remain firm on value and willing to walk away if pricing expectations aren’t met.

Although demand remains somewhat restrained, the report suggests that one or two more rate cuts could trigger a meaningful rise in market activity.

On the whole, the freehold market is outperforming the condo sector, which continues to struggle — with some developers even cancelling planned projects.

Following months of market uncertainty and economic headwinds, some buyers appear ready to ignore the noise and move forward — seizing current conditions that may finally be tipping in their favour.