The Greater Toronto Area (GTA) housing market offered improved affordability and greater inventory in May 2025, creating new opportunities for homebuyers. According to the Toronto Regional Real Estate Board (TRREB), 6,244 homes were sold—down 13.3% from May 2024—while new listings surged by 14%, giving buyers more negotiating power and choices.

TRREB President Elechia Barry-Sproule emphasized that while affordability has improved overall, each neighborhood and housing type has its own dynamics. That’s why partnering with a knowledgeable REALTOR® is more important than ever.

Jason Mercer, TRREB’s Chief Market Analyst, pointed out that borrowing costs are also lower this year, making monthly mortgage payments more manageable. The average selling price dropped by 4% year-over-year to $1,120,879, and the MLS® Home Price Index Composite fell by 4.5%. However, prices did see a slight seasonal bump from April to May, signaling subtle shifts in market momentum.

Despite better conditions for buyers, economic uncertainty is still holding some people back—particularly concerns about Canada’s trade reliance on the United States. TRREB expects home sales to pick up once economic confidence improves and further interest rate cuts are introduced.

TRREB CEO John DiMichele called for the federal government to take meaningful steps toward improving affordability—like reducing housing taxes, supporting innovative construction, and streamlining the development process. He also noted that stimulating home construction can provide broad economic benefits, particularly in light of current trade issues.

For buyers, sellers, and investors alike, May 2025 has proven that the GTA market is changing. If you're thinking about making a move, the time to prepare is now.