May, 2025: Toronto & GTA MLS® home sales: Listings up; Sales down; Prices Steady-to-Lower

Greater Toronto, Ontario, June 4, 2025 - Toronto Regional Real Estate Board president Elicia Barry-Sproule this morning released the board’s monthly residential real estate statistical summary publication - “MarketWatch” - for May citing improvements in affordability and “choice” - as in higher inventory - compared to last May and buyers taking advantage of those better conditions… BUT sales were down, too. Inventory remains “elevated”. Prices are somewhat softer. Given that affordability remains elevated despite the moderation over the past three-plus years, many would-be buyers remain on the sidelines.

There’s still the issue of “stability” as well. Confidence. Tariffs and the trade situation. Debt. We believe that, while homes will continue to sell at or around current levels, no robust market will evolve without these conditions moderating further.

The benchmark five-year mortgage rate was 6.09% in May, down from 6.84% a year earlier.

The Big Picture

Overall - meaning sales of ALL home types & styles across all of the Board’s geographic area as reported by GTA Realtors® through the MLS® system - the average price came in at $1,120,879 for the month. That’s a drop of four percent even versus last May’s $1,167,646. There were 6,244 “firm” [e.g. unconditional] home sales on the month, down 13.3% from 7,206.

All stats reported herein are year-over-year comparisons - most relevant considering the usual strong seasonality of the residential real estate market - unless specifically noted otherwise.

“Peak Price” remains the February 2022 high, generally speaking, to this point. Here’s a quick look at a few key data points from that point in time:

Average Detached Home Price:
- Toronto $2,073,989
- Balance of GTA: $1,727,963
Total Residential Sale Transactions [all Types]:
- 9,097 - note that that was actually down nearly 17% from the February 2021 total!
Time to sell the average home [LDOM] [all Types]:
- 9 Days on Market [DoM] - and that was 37.5% “faster” than the 14 days reported the prior February.
Total Number of Homes Actively Listed for Sale:
- 6,985 - 20% fewer than the prior February.

Specific Numbers by Major Home Type

Metropolitan Toronto total Detached home sales came in at 781 on the month, down 7.9%, at an average selling price of $1,719,937, down 5.6%. In the rest of TRREB’s market area - “The 905” [area code] generally - 2,217 sales of Detached homes were reported, off 11.6%, averaging $1,321,458, also down 5.6%. Just for the record - as noted above - that latter figure in February 2022 was $1,727,963 [on 3,142 sales] - so the Toronto average is less now than the rest of the area averaged at that peak for the Detached category.

Condo Apartments sales continued to struggle: In Metro T.O., 973 units sold, down 25.2%, averaging $709,905, down 7.3%%. The balance of the area saw sales volume of just 509, down 24.8%, at an average sale price of $632,771, off 4.2%.

Quoting from the Report:

Jason Mercer, TRREB Chief Information Officer:
“Home ownership costs are more affordable this year compared to last. Average selling prices are lower, and so too are borrowing costs. All else being equal, sales should be up relative to 2024. The issue is a lack of economic confidence. Once households are convinced that trade stability with the United States will be established and/or real options to mitigate our reliance on the United States exist, home sales will pick up. Further cuts in borrowing costs would also be welcome news to homebuyers.”

TRREB CEO John DiMichele:
"With the federal government’s housing commitments reiterated in the Throne Speech, we now need concrete actions that will restore housing affordability across the GTA and the rest of Canada. This includes lowering high housing taxes and fees, embracing innovative construction technologies, and streamlining processes to reignite the construction of homes. Home construction is associated with huge economic benefits that would help mitigate the negative impact of ongoing trade disputes. Additionally, with inflation remaining low, a rate cut would be a welcome move—particularly for first-time buyers and those renewing their mortgages.”

Elicia Barry-Sproule, TRREB President:
“Looking at the GTA as a whole, homebuyers have certainly benefited from greater choice and improved affordability this year. However, each neighbourhood and market segment have their own nuances. Buyers considering a home purchase should connect with a REALTOR® who is knowledgeable about their preferred area and property type. In today’s market, working with a REALTOR® who brings expertise, the right tools, and a strong network is essential.”

On Inventory…

Total Active Listings [TAL] were 30,964 homes available for sale at month-end - up 41.5%. Housing shortage, huh? If we divide that total inventory number by the month’s sales volume we get an “Indicated Forward Inventory” of just under five months of supply assuming a consistent continuing rate of sales - that’s high by historical standards.

The “Absorption Rate” is the sales volume divided by new listings to tell us how quickly the market “absorbs” new listings as sales. That came to .286 - otherwise described as “slowly”.

The average home took 25 days to sell in May based on the “Listing Days on Market” [LDoM] measure. That’s “31.6% slower” than the 19 days a year ago. Based on the “Property Days on Market” [PDoM] - which includes any previous listing[s] of the home by the same Agent, was 39 days versus 27 - or “44.4% slower” this May.

Thanks - as always - for stopping by… Get out and enjoy the… ummmm… INCONSISTENT Spring weather.

Andrew for theBB.group and JustBungalows.com

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