GTA Real Estate Market Update May 2025: What Buyers and Sellers Need to Know

The Greater Toronto Area (GTA) housing market showed a notable shift this May, offering a more favourable landscape for homebuyers compared to a year ago. Increased inventory levels, combined with moderating prices and borrowing costs, have improved affordability across the region.

GTA REALTORS® reported 6,244 home sales through TRREB’s MLS® System in May 2025, marking a 13.3 percent decline compared to May 2024. However, the number of new listings rose to 21,819, a 14 percent increase year-over-year. The growing inventory has created more choice for buyers and enhanced their ability to negotiate, encouraging many to re-enter the market.

On a month-over-month, seasonally adjusted basis, May recorded the second consecutive rise in home sales, with new listings also up from April—though at a slower pace. This slight tightening suggests that while the market remains balanced, conditions could shift if demand continues to strengthen.

The average selling price in the GTA stood at $1,120,879, representing a 4 percent decrease year-over-year. Similarly, the MLS® Home Price Index Composite benchmark was down 4.5 percent compared to the same period last year. Yet, both the benchmark and the average selling price saw modest gains compared to April, indicating potential stability ahead.

Jason Mercer, TRREB’s Chief Market Analyst, noted, “Home ownership costs are more affordable this year compared to last. While average selling prices and borrowing costs are lower, broader economic confidence remains a barrier. Resolution of trade concerns and additional rate cuts would likely bolster homebuyer activity further.”

Market activity varied by housing type. Detached, semi-detached, and condominium apartment segments all posted year-over-year declines in average prices, though month-over-month indicators suggest early signs of recovery.

Adding to the market optimism, the federal government’s continued commitment to improving housing supply was reiterated in the recent Throne Speech. TRREB’s leadership emphasized the need for decisive action—lowering housing-related taxes, streamlining development processes, and embracing innovative construction methods—to address affordability challenges long-term.

For homebuyers and investors alike, the current GTA market presents a unique window of opportunity. With improved inventory, moderated prices, and favourable borrowing conditions, now is the time to act strategically.

For personalized market insights or to explore your real estate options, contact us today. info@evolvedrealty.ca | www.evolvedrealty.ca