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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