Affordability in the Greater Toronto Area (GTA) housing market improved in May 2025 compared to a year earlier, driven by lower home prices, reduced borrowing costs, increased listings, and declining sales. Home buyers gained more negotiating power due to the higher inventory.
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Sales & Listings:
- Home sales: 6,244, down 13.3% from May 2024.
- New listings: 21,819, up 14% year-over-year.
- Month-over-month: Sales rose for the second consecutive month; listings also increased but at a slower pace.
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Prices:
- Average selling price: $1,120,879, down 4% year-over-year.
- MLS® HPI Composite Benchmark: Down 4.5% annually, but edged up slightly from April 2025.
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Market Outlook:
Despite better affordability, economic uncertainty—especially around trade relations with the U.S.—is dampening buyer confidence. TRREB officials emphasized the need for stronger federal action to improve affordability, including tax relief, innovative housing construction, and rate cuts. -
Key Quote:
TRREB President Elechia Barry-Sproule urged buyers to work with knowledgeable REALTORS® to navigate localized market differences.
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