Author: Real Insights Group Team | Date: January 15, 2026

The 2025 Greater Toronto Area (GTA) housing market has officially come to a close, marking a year defined by increased buyer leverage and a significant shift toward affordability. While annual sales volume saw a pull-back, the final data from December reveals a market that has successfully "reset," creating a strategic entry point for those looking toward the 2026 spring cycle.

Instead of the frenzied bidding wars of years past, 2025 was the year of the negotiation. With elevated inventory and stabilizing prices, the power has shifted back into the hands of prepared households.

📉 2025 Year-in-Review: By the Numbers

According to the Toronto Regional Real Estate Board (TRREB), the full-year data reflects a period of cautious recalibration:

• Total Sales: 62,433 homes sold, down 11.2% from 2024. • New Listings: 186,753 properties hit the market, a 10.1% increase year-over-year. • Average Selling Price: Settled at $1,067,968, representing a 4.7% dip from the previous year’s average of $1,120,241.

“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, TRREB President

📊 December Stats: Stability Amidst the Seasonal Slowdown

December is traditionally a quiet month for real estate, and 2025 was no exception. However, beneath the surface, price benchmarks showed remarkable resilience.

🏗️ Why "Pent-Up Demand" is the Theme for 2026

The narrative for the coming year isn't about a lack of buyers—it's about waiting for the green light. TRREB analysts point to several factors that could trigger a surge in activity by Q2 2026:

1. Employment Confidence: Buyers are waiting for a stabilized labor market before committing to long-term mortgage payments.

2. Trade & Infrastructure: Renewed trade certainty and large-scale domestic projects (announced in late 2025) are expected to boost regional GDP.

3. The "Missing Middle": There is a growing call for government action on tax relief and housing supply to help families find "breathing room" in the current economy.“Once households are convinced that the economy and labour market are on a solid footing, sales will increase as pent-up demand is satisfied.” — Jason Mercer, TRREB Chief Information Officer

🔑 The Bottom Line: What This Means For You

For Buyers: You are entering 2026 with maximum leverage. Inventory remains elevated compared to historical norms, and the 4.7% annual price drop essentially means "homes are on sale" compared to 2024. With mortgage rates trending lower, your purchasing power has significantly improved.

For Sellers: Success in early 2026 will depend on strategic pricing. The data shows that buyers are selective and price-sensitive.

Looking Ahead: Is 2026 Your Year?

The 2025 market was a necessary "cooling" period that has restored balance to the GTA. As we move into the new year, the focus shifts from if the market will recover to when. Ready to navigate the 2026 market?

Whether you are looking for a condo in the core or a detached home in the suburbs, our team provides the data-backed insights you need to make a move with confidence.

Contact us today to discuss your 2026 real estate goals.

The final 2025 data from the Toronto Regional Real Estate Board (TRREB) is in, showing a year defined by increased buyer leverage and improved affordability across the GTA. While annual sales were quieter due to economic caution, the market ended the year on a stable note, creating a unique window of opportunity for those looking to move in early 2026.

Annual home sales finished 11.2% lower than in 2024, while the average selling price for the year settled at $1,067,968—a 4.7% decrease that has helped many households find a more accessible entry point. In December specifically, the average price landed at $1,006,735. While this is lower than last year, when seasonally adjusted prices actually edged upward compared to November, signaling that the market floor has likely been established.

Looking ahead, the narrative for 2026 is all about consumer confidence. With trade relationships stabilizing and major infrastructure projects beginning to stimulate the economy, experts expect pent-up demand to drive a busier spring market. TRREB leaders emphasize that as employment remains resilient and borrowing costs trend lower, the "wait-and-see" crowd will likely return to the fold.

For now, the GTA remains a buyer-friendly environment with healthy inventory levels and significantly less competition than the peaks of recent years. For sellers, strategic pricing remains the key to success as the market prepares for a more active 2026.

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