Greater Toronto Area Housing Market Sees 13.3% Sales Drop in May 2025 Amid Improved Affordability and Economic Uncertainty
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In May 2025, the Greater Toronto Area (GTA) experienced a 13.3% year-over-year decline in home sales, with 6,244 properties sold, according to the Toronto Regional Real Estate Board (TRREB). Despite this downturn, new listings increased by 14% to 21,819, providing buyers with more options and enhancing their negotiating power. The average selling price fell 4% to $1,120,879, and the composite benchmark price decreased by 4.5% compared to the previous year.
Improved affordability, driven by lower borrowing costs and reduced average selling prices, has made homeownership more accessible. The Bank of Canada maintained its benchmark interest rate at 2.75% for the second consecutive month, down from a peak of 5% in the previous year. However, global trade uncertainties, particularly related to U.S. tariffs, have dampened consumer confidence, affecting home-buying decisions.
Market activity varied across different segments. Condominium sales saw the steepest decline at 25.1%, followed by detached homes at 10.6%, and townhouses at 9.8%. Conversely, the first-time homebuyer market remained active due to increased affordability. Experts suggest that while the market is currently more balanced, it may take until the first half of 2026 for a full rebound, contingent on trade stability and economic confidence.
Read the full article on: CP24
