As 2025 drew to a close, new data from the Toronto Regional Real Estate Board (TRREB) painted a picture of a market still under pressure, but notably more affordable than it was a year earlier — a shift that, according to the board, may help lay the groundwork for recovery in the year ahead.
Annual GTA home sales declined in 2025 amid ongoing economic uncertainty, as buyers remained cautious in the face of broader concerns around employment and the cost of living. Over the same period, however, elevated listing inventory gave buyers greater negotiating power, contributing to lower selling prices and improved affordability across the region.
For the full calendar year, GTA REALTORS® reported 62,433 home sales through TRREB’s MLS® System, representing an 11.2% decline compared to 2024. New listings moved in the opposite direction, rising 10.1% year-over-year to 186,753. The annual average selling price for 2025 came in at $1,067,968, down 4.7% from $1,120,241 in 2024.
According to TRREB President Daniel Steinfeld, the combination of lower selling prices and declining mortgage rates helped improve affordability over the course of the year, positioning the market for a potential rebound once consumer confidence improves. Steinfeld noted that sales activity is likely to increase when households feel more assured about economic conditions and the strength of the labour market, allowing pent-up demand to begin flowing back into the market.
December’s figures echoed the broader annual trend. The month saw 3,697 home sales, down 8.9% from December 2024, while new listings edged up 1.8% year-over-year to 5,299. The MLS® Home Price Index (HPI) Composite benchmark declined 6.3% compared to a year earlier, while the average selling price fell 5.1% to $1,006,735.
On a seasonally adjusted basis, December sales dipped slightly compared to November, as new listings continued to rise. While the MLS® HPI Composite trended marginally lower month-over-month, the average selling price saw a modest increase.
Looking ahead, TRREB Chief Information Officer Jason Mercer pointed to the importance of stable economic conditions in supporting a sustained recovery. Mercer emphasized that households need confidence in their employment prospects before taking on long-term mortgage commitments, even in a more affordable market environment.
Meanwhile, TRREB CEO John DiMichele is calling on governments to provide tax relief and address rising living costs, framing affordability challenges as part of a broader economic issue. According to DiMichele, easing financial pressure on households could help restore confidence and support more stable housing demand as the market moves forward into 2026.
