Home sales across the Greater Toronto Area (GTA) continued to slide at the end of 2025, but the region’s real estate board says conditions may be lining up for a rebound later this year.
According to the Toronto Regional Real Estate Board (TRREB), 3,697 homes were sold in December 2025, marking an 8.9% drop year-over-year. On a seasonally adjusted basis, sales were also down 0.4% from November, showing buyers largely remained on the sidelines.
Prices also softened.
- The average selling price fell 5.1% from a year earlier to $1,006,735.
- The composite benchmark price, which reflects a “typical” home, declined 6.3% year-over-year.
2025 in review
TRREB said economic uncertainty weighed heavily on buyer confidence throughout the year:
- Total home sales fell 11.2% in 2025 compared with 2024
- New listings rose 10.1%, keeping inventory elevated
This imbalance worked in favour of buyers, giving them more leverage to negotiate lower prices.
Outlook for 2026
Despite the weak finish to the year, TRREB leadership is cautiously optimistic.
Board president Daniel Steinfeld said improving affordability — helped by lower borrowing costs and softer prices — has positioned the market for a potential recovery.
Improved affordability “has set the market up for recovery” in 2026, Steinfeld said, once buyers regain confidence in the economy and labour market.
Bottom line:
Toronto’s housing market closed 2025 under pressure, but with prices easing, inventory high, and borrowing costs lower, industry experts believe a turnaround could emerge later in 2026 — if economic confidence returns.