Real estate activity across the Greater Toronto Area continued to show signs of strain in May, with home sales dropping 13.3 per cent compared to the same time last year. The Toronto Regional Real Estate Board reported that 6,244 homes were sold last month, despite a significant increase in listings, which rose by 14 per cent year-over-year to 21,819.
The increase in available inventory has tilted the market slightly in favour of buyers, giving them more room to negotiate. However, the shift hasn’t translated into stronger sales, with many prospective buyers still hesitant amid broader economic uncertainty.
Jason Mercer, the board’s chief market analyst, noted that even though borrowing costs and average selling prices have come down from last year, low economic confidence is weighing on buyer decisions. He believes that once households feel reassured about long-term trade stability with the United States, the market could see a rebound.
In the meantime, the average home price in the GTA slipped to $1,120,879 — a four per cent decline from last year. The composite benchmark price, representing a typical home, fell by 4.5 per cent year-over-year.