Toronto Housing Market, May 2025: More Listings, Fewer Sales

The Toronto and GTA housing market in May 2025 can be summed up in two sentences. Sales kept slowing, and listings kept growing. I'm Moe Asgarian, principal real estate broker in Toronto, ranked #47 worldwide at RE/MAX. Here is a quick, honest look at where the market sat in May, and what it means if you are trying to make a move.

The market moved a little this month, but the shadow of economic uncertainty is still hanging over it. Let me walk you through the numbers.

Sales Slowed While Listings Piled Up

Start with the headline. In May, the number of homes that sold was down about 13% compared to the same time last year. On the other side, new listings were up about 14%. So fewer sales, but more supply coming onto the market. When that happens, bargaining power shifts toward buyers. This is a trend we have been watching for a long stretch now, and May kept it going. If you follow my monthly updates, none of this will surprise you.

Prices Eased, But Homes Are Still Expensive

The average home price in the GTA is down roughly 4% from last year. Right now the average sits around $1,120,000. Yes, that is cheaper than a year ago. It is also still a big number for most people. Nobody has cracked the affordability problem yet. Cheaper than last year does not mean cheap.

Month to month there was a small positive move. Sales in May came in higher than April, and prices ticked up a little too. That is normal for this time of year as the weather improves. Even so, I would not tell you the old confidence has come back to the market.

Why Buyers Are Hesitating

So what is behind all this? A lot of it is a lack of economic trust. People still are not sure how trade with the United States is going to shake out, so for now they are holding back. Even weeks after Mr. Carney won the election, that question is unsettled. Parliament is sitting, the cabinet is working, and there is trade news between Canada and the US almost daily, but where it all lands is still unclear. When people cannot tell whether to trust the economy, plenty of them decide to wait. The one hopeful piece is the Bank of Canada. If it keeps cutting rates, borrowing gets cheaper, and first-time buyers especially step back in with more motivation.

The Numbers by Home Type

If you break the market down by property type, here is roughly how May looked. A detached home in the city of Toronto averaged about $1.7 million. In the suburbs around Toronto, detached homes ran closer to $1.3 million. A condo in Toronto itself averaged about $709,000, and in the surrounding region condos averaged around $630,000. On volume, detached homes did the heavy lifting, taking up close to half of all deals. Buyers have far more to choose from right now, and prices are a bit more reasonable. Still, it matters a lot what you are buying and where in the GTA you are buying it.

What This Means If You're Buying

Here is my honest take. In no market can you predict the exact bottom. You only know the bottom after it has passed and the market has already turned. But as a rule, in a market where everyone is a seller, you want to be the buyer. Right now inventory is high and you have a lot of options. You can set the conditions you want and offer a price that actually makes sense for you.

Keep an eye on two things. If the tariff and trade fight between Canada and the US gets resolved, which looks likely before long, and if rates start coming down, which also looks likely, and we head into a fall or winter market where inventory naturally drops, the tables can turn. Use this window while you have it.

If you are weighing a move, fill out the form at the bottom of this page or book a free consultation, and let's map it out together. Stay well and take care.