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Housing Affordability Improves as Sales Decline in the Greater Toronto Area

June 13, 2025 Luxury Real Estate Market Report

As the spring real estate season progresses, the Greater Toronto Area (GTA) market continues to exhibit restrained activity.

While overall sales volumes remain subdued compared to historical seasonal norms, recent data reflects a modest yet notable improvement on a month-over-month basis—marking the second consecutive monthly increase in transaction volume.

Market Overview – May 2025

  • Sales Activity: 6,244 properties sold through the MLS®, representing a 13.3% decrease compared to May 2024
  • New Listings: 21,819 properties were brought to market, reflecting a 14% year-over-year increase
  • Average Sale Price: $1,120,879, a 4% decline from the previous year
  • Days on Market: Properties remained on the market for an average of 25 days, compared to 19 days in May 2024

Despite the year-over-year downturn, prospective buyers are currently benefiting from a favorable purchasing environment characterized by ample inventory, more competitive pricing, and a series of recent interest rate reductions, all of which contribute to improved affordability and greater market accessibility.

While global events and ongoing economic uncertainties continue to influence market dynamics, some indicators point to a gradual rebalancing of the Toronto real estate landscape. Notably, although overall sales are lower than last year, the recent monthly gains and a narrowing gap between new listings and actual sales suggest emerging signs of renewed demand.

Additionally, although average prices remain below 2024 levels, a slight increase over the previous month implies that buyer confidence may be strengthening, and market conditions could begin to tighten in the months ahead.

The current Toronto market reflects a transitional period—characterized by moderated activity, shifting buyer sentiment, and improved affordability. While it is premature to predict a definitive trend, the data suggests the possibility of a more competitive market environment emerging as the year progresses. Stakeholders are advised to monitor developments closely and consult with trusted real estate professionals to navigate this evolving landscape effectively.

 

This Market Report has been provided by
Ana Santos & Sara Branco
Harvey Kalles Real Estate Ltd., Brokerage
LuxuryHomes.com Affiliate

Click here to learn more.

Sources:
ASantos.ca