The Greater Toronto Area’s luxury housing market may be losing some of its sizzle, but a few upscale pockets are defying the broader slowdown.

According to a new report from Wahi, sales of homes priced at $3 million and up fell roughly 15 per cent in the third quarter of 2025 compared to the same time last year, and 17 per cent from the second quarter. In total, 321 luxury homes changed hands between July and September, down from 376 in the third quarter of 2024 and 388 in Q2 2025.

“Luxury homebuyers may have bigger budgets than typical buyers, but many seem to be exercising caution and standing on the sidelines anyway,” said Ryan McLaughlin, economist at Wahi.

Toronto still leads in luxury activity

Despite the pullback, the City of Toronto remains the hub for high-end real estate deals. Of the 22 GTA neighbourhoods with at least five luxury home sales in the third quarter, 14 were located in Toronto proper, underscoring the city’s enduring appeal among affluent buyers.

The top performer? Yorkville, where nine homes sold for a median price of $6.25 million, making it the GTA’s most expensive neighbourhood for luxury resale homes.

Other Toronto neighbourhoods showing renewed life in the $3-million-plus range include Ledbury Park, Lawrence Park, Rosedale, Forest Hill, the Beach and Willowdale. Outside the city, West Oakville in Halton Region also stood out for its uptick in luxury transactions.

Buyers remain selective

While the luxury segment is cooling overall, the data suggests deep-pocketed buyers are becoming more discerning rather than disappearing entirely. Central neighbourhoods with established prestige, walkability and access to amenities continue to draw interest.