GTA Home Sales Drop 11.2% in 2025 as Prices and Demand Cool

Home sales in the Greater Toronto Area (GTA) declined sharply in 2025, falling 11.2 per cent compared to 2024, according to a new report released by the Toronto Regional Real Estate Board (TRREB). The board attributed the slowdown largely to economic uncertainty, which weighed on consumer confidence throughout the year and made many buyers cautious about committing to major purchases.

TRREB reported a total of 62,433 home sales across the GTA in 2025 through its MLS system. At the same time, new listings rose significantly, reaching 186,753 properties, an increase of 10.1 per cent year-over-year. The higher inventory gave buyers more choice and negotiating power, putting downward pressure on home prices and improving affordability in some segments of the market.

The average annual selling price in the GTA fell to $1,067,968 in 2025, representing a decline of 4.7 per cent compared to the 2024 average of $1,120,241. TRREB president Daniel Steinfeld said the combination of lower selling prices and easing mortgage rates helped make housing more affordable, positioning the market for a potential recovery once economic and labour market conditions stabilize.

Despite the improved affordability, TRREB CEO John DiMichele said broader cost-of-living pressures continue to challenge households. He urged governments at all levels to consider tax relief measures to give families and individuals more financial breathing room, which could help restore consumer confidence and support a healthier housing market.

Looking ahead, TRREB officials said federal initiatives aimed at strengthening Canada’s economy could help boost housing demand. Chief information officer Jason Mercer noted that reaffirmed trade relationships and large-scale national development projects may improve economic stability, which is essential for households considering long-term mortgage commitments.

The report also highlighted a continued slowdown at the end of the year. In December 2025, GTA home sales fell 8.9 per cent compared to December 2024, with 3,697 transactions recorded. The average selling price in December dropped to $1,006,735, down 5.1 per cent year-over-year, while new listings saw a modest increase. According to TRREB, sustained recovery in the housing market will depend on stronger confidence in employment and overall economic conditions.