TORONTO – The Greater Toronto Area housing market ended 2025 with a slowdown in sales, reflecting broader economic uncertainties that dampened buyer confidence. At the same time, high inventory levels allowed buyers to negotiate prices down, boosting market affordability. 

Daniel Steinfeld, president of the Toronto Regional Real Estate Board (TRREB), said lower selling prices and mortgage rates made the market more sustainable throughout the year. “Improved affordability has set the stage for a future recovery. Once households are convinced that the economy and labour market are on a solid footing, sales will increase as pent-up demand is satisfied” – he said.

Annual data show that 62,433 home transactions were completed in the GTA through TRREB’s MLS® (Multiple Listing Service), down 11.2% from 2024. New listings reached 186,753, up 10.1% year-over-year. The annual average selling price was $1,067,968, down 4.7% from $1,120,241 in 2024.

In December, 3,697 homes were sold, an 8.9% drop from December 2024, while new listings increased 1.8% to 5,299 units. The composite MLS® Home Price Index – HPI (statistical indicator that measures the real trend in house prices) recorded a 6.3% year-over-year decline, and the average selling price fell 5.1% to $1,006,735. Seasonally adjusted data show slight declines in sales compared to November 2025, with new listings rising and prices relatively stable.

Jason Mercer, TRREB’s Chief Information Officer, said the market’s recovery will depend on stronger trade ties and large-scale domestic economic projects. “GTA households must be confident in their employment situation before committing to long-term monthly mortgage payments, even in this more affordable market” – he noted.

TRREB CEO John DiMichele called for government measures to ease financial pressures on households. “We urge governments at all levels to take action now to provide tax relief for consumers and help ease the rising cost of living. Families and individuals need financial breathing room so they can afford a home or apartment and meet their basic needs. Fair and responsible tax policies can put more money back into people’s pockets, restore consumer confidence, and rebuild trust in the economy. These actions are essential to support stable households and create an economy that works for everyone” – DiMichele said.

The full TRREB statement, including detailed tables, is available here

Photo by Tierra Mallorca on Unsplash