Home sales across the Greater Toronto Area slowed in 2025 compared to 2024, as many buyers took a cautious approach amid ongoing economic uncertainty. At the same time, more homes were available for sale, giving buyers stronger negotiating power and helping bring prices down—making the market a bit more affordable overall.
According to Toronto Regional Real Estate Board (TRREB), lower home prices and declining mortgage rates helped improve affordability throughout 2025. TRREB President Daniel Steinfeld noted that this shift has positioned the market well for a recovery. Once people feel more confident about the economy and job stability, many buyers who have been waiting on the sidelines are expected to return to the market.
For the full year, REALTORS® reported 62,433 home sales, which was 11.2% lower than in 2024. At the same time, new listings rose by 10.1%, reaching 186,753 homes. The average selling price for 2025 came in at $1,067,968, down 4.7% year-over-year.
December followed a similar pattern. There were 3,697 home sales, down 8.9% compared to December 2024, while new listings increased slightly to 5,299. The MLS® Home Price Index (HPI) was 6.3% lower year-over-year, and the average selling price dropped 5.1% to $1,006,735.
Month-over-month, December sales dipped slightly compared to November, while new listings increased. Prices remained relatively stable, with the HPI edging down a bit and the average selling price ticking slightly higher.
TRREB Chief Information Officer Jason Mercer emphasized that stronger trade relationships and major domestic economic projects will play an important role in boosting confidence and future home sales. Buyers, he noted, need to feel secure in their employment before committing to long-term mortgage payments—even in a more affordable market.
TRREB CEO John DiMichele added that governments can help by offering tax relief and addressing the rising cost of living. Giving families and individuals more financial breathing room would help restore confidence, support stable households, and make homeownership more attainable.
