#MarketSnapshot
The Greater Toronto Area (GTA) housing market experienced a slowdown in 2025 compared to 2024, as economic uncertainty influenced consumer confidence. While overall sales declined, an abundance of listings allowed buyers more negotiating power, helping improve affordability across the region.
“The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower. Improved affordability has set the stage for a market recovery. Once households gain confidence in the economy and the labour market, we expect home sales to increase as pent-up demand is satisfied,” said Toronto Regional Real Estate Board (TRREB) President Daniel Steinfeld.
Key GTA Housing Market Highlights for 2025
According to TRREB, GTA REALTORS® reported a total of 62,433 home sales through the MLS® System in 2025. This represents an 11.2% decrease compared to 2024. At the same time, the number of new listings increased to 186,753, up 10.1% year-over-year, creating more options for buyers.
The annual average selling price for homes in the GTA was $1,067,968, down 4.7% from $1,120,241 in 2024. This decline, combined with lower mortgage rates, made the GTA housing market more accessible for potential buyers.
December 2025 Housing Market Snapshot
The final month of 2025 saw a continuation of the annual trends. There were 3,697 homes sold in December, down 8.9% from the same month in 2024. New listings reached 5,299, representing a 1.8% increase year-over-year.
The MLS® Home Price Index (HPI) Composite benchmark fell 6.3% compared to December 2024, while the average selling price decreased to $1,006,735, a 5.1% drop from the previous year.
On a month-to-month basis, December home sales were slightly lower than November 2025, while new listings increased. The HPI Composite benchmark also trended slightly downward, although the average selling price edged higher.
Outlook for the GTA Housing Market
TRREB experts highlighted that strong economic fundamentals and domestic development projects will be essential to boosting future home sales.
“Buyers need confidence in their employment and long-term financial stability before committing to mortgage payments, even in a more affordable market,” said TRREB Chief Information Officer Jason Mercer.
Government action on affordability and the cost of living will also play a key role in shaping the market.
“Families and individuals need financial breathing room to afford homes while maintaining their daily needs. Responsible tax policies can restore consumer confidence, increase household stability, and support a healthy economy,” said TRREB CEO John DiMichele.
What This Means for Buyers and Sellers
For homebuyers, 2025 presented a more affordable market with opportunities to negotiate prices, particularly with increased listing inventory. For sellers, understanding market trends and pricing strategically will be key to attracting motivated buyers.
As we move into 2026, the GTA housing market is showing signs of recovery. Improved affordability, combined with stable mortgage rates and economic growth, could help spark renewed buyer interest in the region.
What This Means for You
Whether you’re a buyer, seller, or investor, the GTA market continues to evolve, and opportunities remain for those who understand the trends.
Our experienced team is here to guide you, whether you’re planning to buy your first home, upgrade, or list your property. Let’s talk strategy and make your move with confidence.
