Toronto’s 2025 real estate market saw a significant downturn in sales due to economic uncertainty and high interest rates, with prices declining as inventory rose, creating a buyer’s market with greater negotiating power.
The Toronto Regional Real Estate Board has released stats for December as well as a statistical perspective on the year as a whole.
First, a little reflection by TRREB on 2025:
Annual Greater Toronto Area (GTA) home sales declined in 2025 compared to 2024, as economic uncertainty weighed on consumer confidence. Over the same period, listing inventory remained elevated, allowing for selling prices to be negotiated downward, helping improve affordability.
“The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower. Improved affordability has set the market up for recovery. Once households are convinced that the economy and labour market are on a solid footing, sales will increase as pent-up demand is satisfied,” said Toronto Regional Real Estate Board (TRREB) President Daniel Steinfeld.
“Reaffirmed trade relationships and large-scale domestic economic development projects will be key for improved home sales moving forward. GTA households must be confident in their employment situation before committing to long-term monthly mortgage payments, even in this more affordable market,” said TRREB Chief Information Officer Jason Mercer.
“We urge governments at all levels to take action now to provide tax relief for consumers and help ease the rising cost of living. Families and individuals need financial breathing room so they can afford a home or apartment and meet their basic needs. Fair and responsible tax policies can put more money back into people’s pockets, restore consumer confidence, and rebuild trust in the economy. These actions are essential to support stable households and create an economy that works for everyone,” said TRREB CEO John DiMichele.
Here is the Toronto Real Estate Board’s analysis for December 2025, with graphics courtesy of Market Watch:
For calendar year 2025, GTA REALTORS® reported 62,433 home sales through TRREB’s MLS® System – down by 11.2 per cent compared to 2024. New listings amounted to 186,753 – up by 10.1 per cent year-over-year. The annual average selling price in 2025 was $1,067,968 – down by 4.7 per cent compared to $1,120,241 in 2024.
There were 3,697 home sales reported in December 2025 – down by 8.9 per cent compared to December 2024. New listings entered into the MLS® System amounted to 5,299 – up by 1.8 per cent year-over-year.
The MLS® Home Price Index (MLS® HPI) Composite benchmark was down by 6.3 per cent year-over-year in December 2025. The average selling price, at $1,006,735, was down by 5.1 per cent compared to December 2024.
On a seasonally adjusted basis, December home sales were down slightly month-over-month compared to November 2025, while new listings were up. The MLS® HPI composite trended slightly lower compared to November, while the average selling price edged higher.
Whew!
If you’d like to see more in-depth figures – by housing type and/or geographical area – here’s the complete set of December 2025 TRREB Stats.
As the Toronto real estate market continues its very slow recovery, I hope you follow our Urbaneer Blog. We’re committed to providing relevant information and poignant insight from a foundation of experience – like this post entitled ‘Let’s Talk About The State Of The Toronto Condo Market’ – and exploring the concerns weighing heaviest on the minds of property Buyers & Sellers (‘Toronto Real Estate Reality Check: From Frenzy To Fatigue And The Hangover Of FOMO‘).
Since 1989, I’ve steered my career through a real estate market crash and burn; survived a slow painful cross-country recession; completed an M.E.S. graduate degree from York University called ‘Planning Housing Environments’; executed the concept, sales & marketing of multiple new condo and vintage loft conversions; and guided hundreds of clients through the purchase and sale of hundreds of freehold and condominium dwellings across the original City of Toronto. From a gritty port industrial city into a glittering post-industrial global centre, I’ve navigated the ebbs and flows of a property market as a consistent Top Producer. And I remain as passionate about it today as when I started.
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