📣 Toronto Real Estate Market Update May 2025. May 2025 GTA Housing Market Report: More Listings, Lower Home Prices

📊 Market Overview: May 2025

✨ Sales Activity: Overall sales activity is seasonally slow. In May 2025, only 6,244 properties sold, down -13.3% compared to May 2024. While the Toronto Regional Real Estate Board (TRREB) did note an +8.4% month-over-month increase from April 2025, it’s important to remember that May is typically one of the busiest months for sales

✨ Price Trends: Average home prices are -4.5% lower this year compared to last year. Prices for all types of homes—detached, semis, townhouses, and condos—are down across the board, year-over-year

✨ Inventory Levels: Active listings are up significantly by +41.5% year-over-year, providing buyers with a wide selection of options and contributing to market conditions that favour buyers

🏡 A Market Tilted Towards Buyers 

The Greater Toronto Area (GTA) is currently a buyer's market with plenty of advantages for those looking to make a move.

✨ More Affordability: The Bank of Canada's cumulative interest rate cuts, totalling 2.25 percentage points since June 2024, have improved mortgage affordability, enabling more buyers to enter the market and also opening up more choices with a larger budget 

✨ Increased Selection: With a surge for both new and active listings, buyers now enjoy an expanded pool of homes to choose from. This means less competition, less stress, and more time to find the perfect fit

✨ Strategic Timing: Prices are below last year’s levels, and borrowing costs have dropped, giving buyers a golden opportunity to lock in a home at a more affordable price point before the market picks up steam again

💡 Advice for Buyers 

✨ Act Promptly: While the market currently favours buyers, conditions can shift, and they can shift very quickly. Taking advantage of the current affordability and selection is advisable

✨ Secure Financing: Obtain a mortgage pre-approval to understand your budget and to strengthen your negotiating position when making offers

✨ Research Thoroughly: Visit different neighbourhoods and property types to find the best fit for your needs and investment goals

💼 Guidance for Sellers 

✨ Price Competitively: With significantly increased inventory and low sales volumes, we're in a buyer's market. With buyers having the advantage, setting a realistic and competitive price is crucial to attract buyers

✨ Enhance Property Appeal: Invest in staging and minor renovations to help your property stand out in a more crowded market

✨ Be Flexible: Be prepared for negotiations. If the market response is not favourable, consider offering incentives to close deals (e.g. accommodate the buyer’s preferred move-in date, offer to pay a portion of the buyer’s legal fees, offer to pay a few months of property taxes or condo fees in advance to ease the financial burden on the buyer etc)

🔮 Looking Ahead 

Many industry experts expected sales volumes and prices to trend higher this year, especially after the Bank of Canada’s series of rate cuts aimed at stimulating the market. However, those forecasts have been dampened by a lack of consumer confidence stemming from uncertainty around U.S. trade negotiations. With those trade issues expected to stabilize soon, the current buyer’s market might not last long, presenting a smart window of opportunity for buyers to secure a home this summer before prices and competition pick up.