The real estate market in the Greater Toronto Area (GTA) exhibited continued signs of weakness in May 2025, with home sales demonstrating a notable decrease compared to the previous year. According to the latest data from the Toronto Regional Real Estate Board (TRREB), a total of 6,244 homes were sold during the month, which marks a decline of 13.3 percent year-over-year.
Amidst this downturn in sales, the inventory levels in the housing market have risen substantially. There were 21,819 new listings in May, reflecting a 14 percent increase compared to the same month the previous year. This increase in available homes is providing potential buyers with greater negotiating power as they navigate the current market conditions.
Jason Mercer, the chief information officer of TRREB, noted that while average selling prices and borrowing costs have decreased from the previous year, a dip in economic confidence is impacting the decisions of prospective homebuyers. The cautious sentiment appears to be influencing market dynamics as potential buyers weigh their options in a more uncertain economic environment.
Mercer emphasizes that the momentum in home sales is likely to improve once households are reassured that trade stability with the United States has been re-established. This aspect of economic stability is critical to restoring consumer confidence, which in turn may spur a resurgence in home buying activity.
In terms of pricing, the average selling price for homes in the GTA has declined by four percent from last year, bringing it to $1,120,879. Additionally, the composite benchmark price, which is designed to reflect the typical home price, also saw a decrease of 4.5 percent year-over-year. These pricing trends indicate adjustments in the market as it responds to a combination of factors, including rising inventory levels and shifting buyer confidence.
Overall, the Greater Toronto Area's real estate market experienced a challenging month in May 2025, characterized by weakening sales figures and increasing inventory. As potential buyers find more options available, the interaction between consumer confidence and market stability will likely play a crucial role in shaping future trends in home sales.
