Toronto home sales, prices slide yet again

Home sales and prices fell in the Greater Toronto Area (GTA) in December to round out a miserable year for the city's housing market, while full-year activity was well below the level seen in 2024.

In December alone, sales fell 8.9% year-over-year to 3,697 transactions, while new listings edged up 1.8% to 5,299, according to a new report from the Toronto Regional Real Estate Board (TRREB). Average prices slipped by 5.1% on a year-over-year basis, coming in at just over $1 million. 

For the full year, GTA realtors reported 62,433 home sales, down 11.2% from 2024, while new listings rose 10.1% to 186,753. The average selling price slipped 4.7% to $1,067,968 from $1,120,241 the year before.

Sales slump as listings rise

TRREB’s report said “economic uncertainty weighed on consumer confidence” in 2025, even as buyers gained more negotiating power in a market flush with options.

“Over the same period, listing inventory remained elevated, allowing for selling prices to be negotiated downward, helping improve affordability,” the board said.“The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower,” TRREB president Daniel Steinfeld said.

“Improved affordability has set the market up for recovery. Once households were convinced that the economy and labour market were on a solid footing, sales would increase as pent-up demand is satisfied.”

Board touts affordability, presses for tax relief

TRREB’s leadership tied that affordability shift to broader policy questions. “We urged governments at all levels to take action now to provide tax relief for consumers and help ease the rising cost of living,” chief executive John DiMichele said.

“Families and individuals needed financial breathing room so they could afford a home or apartment and meet their basic needs,” he said. “Fair and responsible tax policies could put more money back into people’s pockets, restore consumer confidence, and rebuild trust in the economy.”

Jason Mercer, TRREB’s chief information officer, said “reaffirmed trade relationships and large-scale domestic economic development projects will be key for improved home sales moving forward.”

“GTA households must be confident in their employment situation before committing to long-term monthly mortgage payments, even in this more affordable market,” Mercer said.

Economic clouds still shaped buyer behaviour

The 2025 downturn followed a year described as “transitionary,” when 2024 sales remained weak by historical standards despite early signs of stabilization. Sales tumbled in April 2025 as new listings surged and prices slid on tariff and recession fears, reinforcing the role of macro risk in buyer psychology.

Another report pointed to buyers navigating market uncertainty as elevated inventory and falling prices failed to fully draw cautious households back into the market.

Source CMP
By Liezel Once