As May 2025 wraps up, the Greater Toronto Area (GTA) real estate market is sending mixed signals. Yes, sales are down and inventory is up, but that doesn’t mean all hope is lost. In fact, if you know where to look, this could be one of the best times to enter the market in years.

GTA New Home Sales Are Down – But That’s Not the Whole Story

Last month, only 310 new homes were sold in the GTA. That’s a staggering 72% drop from last year and almost 90% below the 10-year average. To put it simply, it was the slowest April on record. And early signs from May suggest the trend hasn’t changed much.

So what’s driving this? Prices have come down a bit, single-family homes dropped 5.4% to $1.53 million, and condos fell 3.6% to $1.02 million. But affordability is still a stretch for many. Add in uncertainty around tariffs and rising unemployment, and buyers are hitting pause.

Edward Jegg, research manager at Altus Group, summed it up: “Buyers crave predictability, and the swirling uncertainty around tariffs is depriving would-be purchasers of the confidence they need.”

But tariffs aren’t the whole story. The deeper issue? Many would-be buyers simply don’t feel confident about their financial future.

Prices Are Slipping – So Why Aren’t Buyers Rushing In?

The flip side of falling demand is rising inventory. In April, there were 21,363 new homes for sale across the GTA, up 6.3% from the year before and the highest in nearly a decade. That’s roughly 15 months’ worth of supply. For context, a balanced market typically sits around 4 to 6 months.

That shift puts more power in the hands of buyers. More listings mean more choice, more negotiating room, and less competition. And while prices haven’t dropped drastically (yet), the sheer volume of homes available could force sellers to adjust further, especially if sales continue to slow into the summer.

The Hidden Advantage No One’s Talking About

Let’s face it: hearing about a “Toronto real estate crash” sounds alarming. But here’s the truth, what we’re seeing now is more of a reset than a crash. And for buyers and investors who’ve been sitting on the sidelines, this could be your moment.

If you’ve been frustrated by bidding wars and skyrocketing prices over the past few years, now’s the time to explore your options. There’s less pressure, more flexibility, and a wider range of homes on the market. Whether you’re looking for a first home, a downsizing opportunity, or a long-term investment, the current landscape gives you room to breathe.

Is This the Start of a New Normal in the GTA?

We may be witnessing a longer-term market correction, not just a temporary slowdown. But that’s not necessarily bad news. In fact, history shows that downturns often create ideal conditions for savvy buyers and strategic sellers.

So, whether you’re looking to upsize, downsize, invest, or enter the market for the first time, this could be your window

Want to Make a Move?

Real estate is all about timing and while no one has a crystal ball, what we’re seeing now could be the opening many buyers have been waiting for. If you’re curious about what’s available, or you’d like expert help figuring out your next step, we’re here to help.

Follow our blog for more updates on the GTA market, or Get in touch with our team for personalized advice. Whether you’re buying, selling, or just exploring, we’ll help you move forward with confidence.