Greater Toronto Area Records Third Consecutive Month of Sales Growth Amid Improving Market Conditions
TORONTO – Home sales across the Greater Toronto Area continued their upward trend in May, marking the third consecutive month of year-over-year growth as lower prices and improved affordability encouraged more buyers to enter the market.
A total of 6,583 residential properties changed hands across the GTA during May, representing a 6.3 per cent increase compared with the same month last year. Sales activity also showed strong momentum compared with April, reflecting growing confidence among homebuyers despite ongoing economic uncertainty.
While sales increased, home prices remained lower than a year ago, creating favourable conditions for purchasers. The average selling price across the region was approximately $1.07 million, down 4.6 per cent from May 2025. Benchmark prices, which reflect the value of a typical home in the market, also declined compared to the previous year.
Real estate professionals say the current market continues to favour buyers, who have greater negotiating power due to a healthy supply of available properties and more balanced market conditions than those experienced during previous housing booms.
New listings entering the market declined significantly compared to last year, with fewer homeowners choosing to sell. At the same time, active inventory also decreased, suggesting that demand is gradually absorbing available housing stock.
Industry experts note that if sales continue to strengthen while listings remain relatively constrained, housing prices could begin stabilizing and potentially show modest growth later in the year.
Lower borrowing costs, improving consumer confidence and increased certainty regarding interest rates have helped bring some buyers back into the market after a period of caution. First-time buyers, move-up purchasers and investors are increasingly reassessing opportunities as prices remain below recent peak levels.
Market observers believe the GTA housing market is moving toward a more balanced environment, where buyers and sellers can negotiate under more stable conditions than those seen during the highly competitive markets of previous years.
Despite ongoing affordability challenges, the combination of softer prices, improving financing conditions and increased choice is helping many prospective homeowners re-enter the market, contributing to the steady recovery in housing activity across the Greater Toronto Area.