2025 GTA Housing Market Ends with Improved Affordability – TRREB December Market Watch
GTA Housing Market Snapshot – December 2025
The Toronto real estate market closed 2025 with greater affordability and elevated inventory, creating more balanced conditions for buyers across the GTA. According to the Toronto Regional Real Estate Board (TRREB), annual home sales declined, but price relief and lower borrowing costs have positioned the market for a potential recovery in 2026.
In December 2025, 3,697 homes sold, down 8.9% year-over-year, while new listings increased 1.8% to 5,299, keeping buyer choice elevated. The MLS® Home Price Index (HPI) Composite declined 6.3% year-over-year, reinforcing TRREB’s affordability narrative.
Home Prices: Continued Softening Supports Affordability
- Average GTA selling price (Dec 2025): $1,006,735
- Year-over-year change: −5.1%
- 2025 annual average price: $1,067,968 (−4.7% vs. 2024)
Benchmark prices trended lower through the second half of 2025, particularly for detached and condominium apartments, as elevated supply allowed buyers to negotiate more effectively. This marks a clear shift from the tight seller conditions seen earlier in the decade.
Sales and Listings: Supply Outpacing Demand
For the full 2025 calendar year:
- Total GTA sales: 62,433 (−11.2% YoY)
- Total new listings: 186,753 (+10.1% YoY)
This divergence between listings and sales kept the Sales-to-New Listings Ratio (SNLR) in buyer-favouring territory for much of the year.
SNLR simply compares how many homes sold versus how many were listed—lower ratios signal more negotiating power for buyers.
Seasonally Adjusted Trends: Market Stabilizing
On a seasonally adjusted basis, December home sales dipped slightly compared to November, while new listings increased, giving buyers more choice in the marketplace. The MLS® Home Price Index (HPI) benchmark, which tracks the value of a typical home by adjusting for property type and quality, edged modestly lower, indicating that underlying home values remained soft.
At the same time, the average selling price increased slightly, reflecting the mix of homes sold during the month rather than a broad rise in prices. Together, these trends point to price stabilization rather than acceleration, consistent with a market transitioning from a correction phase toward early-stage recovery.
Economic Backdrop: Confidence Is the Missing Piece
TRREB highlights that affordability has improved due to:
- Lower mortgage rates
- Reduced selling prices
- Increased housing supply
However, economic and labour market confidence remains the key factor holding back demand. TRREB expects pent-up demand to return once households feel more secure about employment and long-term economic conditions.
What This Means for Buyers and Sellers in Toronto
- Buyers: More listings, softer prices, and improved affordability create favourable conditions—especially for first-time buyers and move-up purchasers.
- Sellers: Pricing strategy and preparation matter more than ever; well-positioned homes continue to sell, but overpricing leads to longer days on market.
Summary
- GTA home prices fell 5.1% YoY in December 2025
- Inventory remained elevated, improving buyer choice
- 2025 sales declined, but affordability improved meaningfully
- Market conditions set the stage for a gradual recovery in 2026
Closing Remark:
As 2025 ends, the Toronto housing market has reset into a more sustainable, buyer-friendly environment—laying the groundwork for renewed activity once confidence returns.
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🖋️ Opel Ou, Real Estate Broker, FRI, SRES, CCGR
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Source: TRREB – Market Watch
December 2025 – Market Statistics – Quick Overview
Residential Statistics
Commercial Statistics(Q2 2025)
Condominium Sales Statistics(Q3 2025)
Condominium Rental Statistics(Q3 2025)
* **In conjunction with TRREB’s redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years**
Source: Housing Market Chart Archive – The Toronto Regional Real Estate Board (TRREB)