The Greater Toronto Area (GTA) real estate market experienced a continued decline in home sales in December, reflecting a persistent lack of buyer confidence amid economic uncertainty. The Toronto Regional Real Estate Board (TRREB) reported that 3,697 homes were sold in the GTA last month, marking an 8.9 percent drop compared to December of the previous year. Additionally, home sales showed a slight decrease of 0.4 percent on a seasonally adjusted basis when compared to November.
The average selling price of homes also fell, declining by 5.1 percent year-over-year to $1,006,735. Furthermore, the composite benchmark price, which is intended to represent the typical home, experienced a more significant decrease of 6.3 percent from the previous year. This downward trend in prices indicates shifting dynamics in the market, as increased inventory has provided potential buyers with more opportunities for negotiation.
Throughout 2025, the economic uncertainty notably impacted the GTA housing market, resulting in a total sales decline of 11.2 percent compared to the previous year. New listings, however, increased by 10.1 percent year-over-year, allowing buyers to leverage greater choice and influence over pricing. TRREB president Daniel Steinfeld pointed out that this improved affordability, in part due to lower borrowing costs, may pave the way for a market recovery anticipated in 2026. This projected recovery hinges on buyers regaining confidence in the economy and job market, which must show signs of stability.
The report highlights the ongoing challenges faced by the Greater Toronto housing market as it grapples with external economic conditions. The diminishing sales figures and fluctuating prices paint a picture of a market in transition, with buyers remaining cautious in their purchasing decisions. The TRREB emphasizes that the current imbalance between supply and demand presents opportunities for potential homeowners to negotiate better deals, a silver lining amid the broader economic uncertainties.
This analysis of the real estate market trends in the Greater Toronto Area serves as a critical snapshot into current conditions and anticipated future shifts as the market braces for recovery in the coming year.
