The Greater Toronto Area (GTA) housing market is offering more breathing room to buyers this spring. According to the Toronto Regional Real Estate Board’s (TRREB) latest Market Watch, affordability improved in May 2025, giving buyers more options and negotiating power compared to the same time last year.

More Listings, Fewer Sales

GTA REALTORS® reported 6,244 home sales in May 2025 – a 13.3% drop compared to May 2024. But while sales are down, new listings surged by 14% year-over-year to 21,819, giving buyers a wider range of properties to choose from.

Active listings also jumped significantly, up 41.5% compared to the previous year, reaching 30,964. That’s the kind of inventory expansion that tilts market conditions in favour of buyers.

“Homebuyers have certainly benefited from greater choice and improved affordability this year,” said TRREB President Elechia Barry-Sproule. “But every neighbourhood tells a different story, and having a knowledgeable REALTOR® by your side is more important than ever.”

Prices Dip, But Confidence Still Lags

The average selling price across the GTA in May 2025 was $1,120,879, down 4.0% from last year. The MLS® Home Price Index Composite benchmark also fell 4.5% year-over-year, continuing the softening trend observed over the past few months.

Still, May wasn’t all doom and gloom on a seasonally adjusted basis, both the average price and sales increased compared to April 2025, marking the second consecutive month of gains.

So why aren’t more people buying?

“The issue is a lack of economic confidence,” explained TRREB Chief Information Officer Jason Mercer. “Buyers are waiting for signs of trade stability with the U.S. or viable economic alternatives before jumping in.”

Lower borrowing costs and inflation holding steady may open the door to more activity in the coming months, especially for first-time buyers or those up for renewal.

Local Highlights: Where Buyers Are Looking

Here’s a quick snapshot of market performance in select GTA regions:

• Toronto: 2,315 sales, average price $1,155,616
• York Region: 1,005 sales, average price $1,282,040
• Peel Region: 1,035 sales, average price $1,022,631
• Durham Region: 850 sales, average price $905,702

Some of the highest average prices were seen in:

• King: $1,795,938
• Richmond Hill: $1,478,294
• Vaughan: $1,323,877

Time on Market Is Rising

The average listing took longer to sell this May. The average number of days on market (LDOM) rose to 25 days, a 31.6% increase from 2024. Meanwhile, property days on market (PDOM) climbed to 39 days, up a sharp 44.4%.

What’s Next?

While the federal government continues to signal support for affordability through speeches and promises, TRREB’s leadership says it’s time for action.

“We need real steps – lower housing taxes, innovative building methods, and faster approvals to reignite construction,” said TRREB CEO John DiMichele. “Home construction can fuel the economy and ease pressure from trade disruptions.”

Thinking of making a move?
Whether you’re buying your first condo or selling a detached home, now is a critical time to stay informed. Reach out to our team to get local insights tailored to your neighbourhood and goals.

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