Home sales in the GTA dipped 2.4% this June compared to last year, but new listings jumped nearly 8%, giving buyers more options and flexibility to negotiate.

The average selling price came in at about $1.1M, roughly 5.4% lower than June 2024. Prices and sales edged down slightly from May, though there’s still some momentum from the spring market.

Lower borrowing costs and more listings are making homeownership a bit more within reach for some buyers. Still, many are staying on the sidelines, waiting for more economic stability and clearer signs of recovery.

If interest rates continue to drop and confidence grows, we could see more movement in the market and maybe even some support for prices.

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Affordability improves, but uncertainty lingers. Here’s what homebuyers and investors need to know.

If you've been sitting on the fence about entering the Greater Toronto Area real estate market, you’re not alone. June 2025 saw some interesting developments that could tip the scales for buyers but it's not as straightforward as just price drops or lower rates.

Whether you're a first-time buyer looking to secure your starter home, or an investor waiting for the right conditions to expand your portfolio, this month’s market snapshot is worth a closer look.

Let’s break down what’s happening, why it matters, and what it could mean for your next move in real estate.

✅ Affordability is Improving — But Caution Remains

Good news first: housing affordability continued to improve in June 2025.

That’s largely thanks to two things:

• Lower average selling prices compared to this time last year

• Reduced borrowing costs (interest rates aren’t as punishing as they were in 2024)

The average GTA home sold for $1,101,691 in June, which is 5.4% lower year-over-year. This drop, combined with easing mortgage rates, means that monthly payments are becoming more manageable for many households.

But here’s the twist: despite these improvements, many potential buyers are still hesitant. Economic uncertainty ranging from trade tensions to crime and safety concerns continues to influence consumer confidence.

📉 Sales Are Down Year-over-Year, but Rising Month-to-Month

Let’s talk numbers:

• 6,243 home sales were recorded in June, a 2.4% drop from June 2024

• But on a seasonally adjusted basis, sales were up compared to May 2025

• New listings rose year-over-year by 7.7%, giving buyers more choice

• Month-over-month, however, listings actually dropped tightening inventory again

What does that mean?

There’s more selection than last year, and buyers are negotiating better deals, especially with sellers adjusting to current price trends. But fewer new listings in recent weeks could put upward pressure on prices if buyer activity picks up.

🧠 What This Means for Buyers and Investors

🏠 First-Time Buyers:

This could be the window of opportunity you've been waiting for.

With more room to negotiate and slightly lower prices, you have a better chance of entering the market before it heats up again. Just keep in mind that economic uncertainty still lingers, so make sure your financial foundation is solid before diving in.

💼 Investors:

Lower prices and more supply could signal smart buying opportunities especially if you’re looking to flip or rent. But remember: the market isn’t booming just yet. You may need to play the long game for returns, especially if you’re eyeing appreciation-based gains.

💬 Looking Ahead: What Could Shift the Market Next?

According to TRREB’s Chief Information Officer, two additional interest rate cuts and improved U.S.-Canada trade relations could give the market a significant boost. Lower borrowing costs would make homeownership even more attainable, potentially increasing competition and raising prices again.

There’s also growing concern around public safety, with a spotlight on home invasions and carjackings in the GTA. While the government is working on tougher crime legislation, this issue could influence neighborhood desirability and buyer confidence in specific areas.

The GTA housing market is showing signs of steady recovery, and there are opportunities for strategic buyers and investors. But it’s not a free-for-all—uncertainty still plays a big role in decision-making.

If you’re thinking about buying, stay informed, assess your risk tolerance, and work with professionals who understand the current landscape. The rest of 2025 could bring more shifts—so be ready to move when the time is right.

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The Greater Toronto Area (GTA) real estate market showed more signs of change in May 2025, offering improved affordability and greater housing inventory compared to the same time last year. While home sales were down, more listings gave buyers better choices and stronger negotiating power.

If you’ve been watching the Toronto housing market and wondering if now is a good time to buy, here’s what you need to know.

🔍 What Happened in the GTA Housing Market – May 2025

According to the Toronto Regional Real Estate Board (TRREB), there were 6,244 home sales in May 2025, which is 13.3% fewer sales compared to May 2024. However, new listings went up by 14%, reaching a total of 21,819 homes listed on the MLS® System.

This means buyers now have more options than they did last year, which helps them take their time, compare properties, and negotiate better deals.

“Homebuyers have certainly benefited from greater choice and improved affordability this year,” said TRREB President Elechia Barry-Sproule. “But each neighbourhood is different, and working with a REALTOR® who knows your area is key.”

💰 Have Home Prices Dropped in the Greater Toronto Area?

Generally speaking, yes. Average prices have come down a bit. The average across the GTA was $1,120,879 in May 2025—down 4% year-over-year. The MLS® Home Price Index, which measures home value trends more accurately than averages alone, also dropped 4.5% compared to May 2024. Not all property types and areas are equal with some doing better then others.

However, compared to April 2025, both prices and sales slightly increased month-over-month, showing early signs of stability in the market.

📉 Why Are Sales Still Down?

You might wonder if homes are more affordable and borrowing costs are lower than last year, why are fewer people buying?

TRREB Chief Information Officer Jason Mercer explained that the slowdown isn’t just about prices or mortgage rates—it’s about economic confidence.

“Once households feel more secure about trade stability and economic growth, home sales will likely pick up. A further drop in interest rates would also encourage more activity, especially from first-time buyers.”

🏗️ What Could Help Canada’s Housing Market?

TRREB’s leadership also called for more action from the federal government to address long-term housing affordability. Some key suggestions include:

• Lowering housing taxes and fees

• Encouraging innovative construction technologies

• Speeding up the home building approval process

• Supporting more housing development across Canada

“Home construction not only adds supply but also boosts the economy. And with inflation staying low, a rate cut would help even more,” added TRREB CEO John DiMichele.

The Toronto real estate market in May 2025 is leaning more in favor of buyers, thanks to more homes for sale and softer prices. Still, many people are cautiously waiting for better economic news or lower interest rates.

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Home sales in the GTA were down 13.3% this May compared to last year, but new listings rose by 14%, giving buyers more choices and stronger negotiating power.

The average selling price was around $1.12M — about 4% lower than May 2024. However, prices and sales ticked up slightly from April, showing early signs of stability.

Lower home prices and borrowing costs are making things more affordable, but some buyers are still waiting for interest rates to drop and the economy to feel more secure.

If confidence improves and rates come down, more people could jump back into the market. Right now, buyers have more room to negotiate, and sellers need to price wisely.

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