The Greater Toronto Area (GTA) housing market experienced a shift in 2025, with home sales declining year-over-year as economic uncertainty continued to influence buyer confidence. At the same time, elevated inventory levels created more negotiating power for buyers, contributing to improved affordability across the region.
Key Market Highlights – 2025
Total Home Sales: 62,433
↓ 11.2% compared to 2024
New Listings: 186,753
↑ 10.1% year-over-year
Average Selling Price: $1,067,968
↓ 4.7% from 2024
With more listings available and softer pricing, buyers benefited from increased choice and improved purchasing conditions.
Market Affordability Sets the Stage for Recovery
According to the Toronto Regional Real Estate Board (TRREB), declining selling prices combined with lower mortgage rates helped make homeownership more attainable in 2025.
“The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower. Improved affordability has set the market up for recovery,”
— Daniel Steinfeld, President, TRREB
As economic and labour market confidence strengthens, pent-up demand is expected to translate into higher sales activity.
December 2025 Snapshot
Home Sales: 3,697
↓ 8.9% compared to December 2024
New Listings: 5,299
↑ 1.8% year-over-year
Average Selling Price: $1,006,735
↓ 5.1% year-over-year
MLS® HPI Composite Benchmark:
↓ 6.3% year-over-year
On a seasonally adjusted basis, December sales dipped slightly from November, while new listings increased. The MLS® Home Price Index edged lower month-over-month, even as the average selling price showed modest improvement.
Looking Ahead
Market recovery will depend heavily on economic stability, employment confidence, and broader policy support.
“Reaffirmed trade relationships and large-scale domestic economic development projects will be key for improved home sales moving forward,”
— Jason Mercer, Chief Information Officer, TRREB
TRREB leadership continues to call for government action to ease affordability pressures and support households across the GTA.
“Fair and responsible tax policies can put more money back into people’s pockets, restore consumer confidence, and rebuild trust in the economy,”
— John DiMichele, CEO, TRREB
What This Means for Buyers & Sellers
Buyers: Improved affordability, more choice, and greater negotiating power
Sellers: Competitive pricing and strategic marketing are more important than ever
Market Outlook: Positioned for gradual recovery as confidence returns
