Welcome back to Market Watch! The number of homes sold in the Greater Toronto Area (GTA) continued its upward trajectory for a second month in a row. New listings were also up compared to April, but by a lesser monthly rate than sales, suggesting a slight tightening in market conditions. Read more to see how this affects the Greater Toronto Area (GTA) housing market. GTA REALTORS® reported 6,244 home sales through TRREB’s MLS System in May 2025, a 13.3% decrease compared to the same period last year. The MLS® Home Price Index Composite benchmark was down by 4.5 per cent year-over-year in May 2025. The average selling price, at

$1,120,879, was down by 4% compared to May 2024. On a month-over-month seasonally adjusted basis, the MLS® HPI Composite and average selling price both edged up compared to April 2025. May home sales were also up month-over-month compared to April 2025.

The number of new listings is at 21,819, a 14% increase year-over-year but by a lesser monthly rate than sales. “Home ownership costs are more affordable this year compared to last. Average selling prices are lower, and so too are borrowing costs. All else being equal, sales should be up relative to 2024. The issue is a lack of economic confidence. Once households are convinced that trade stability with the United States will be established and/or real options to mitigate our reliance
on the United States exist, home sales will pick up. Further cuts in borrowing costs would also be welcome news to homebuyers,” said Jason Mercer, TRREB’s Chief Information Officer.

In summary, buyers in the Greater Toronto Area (GTA) continue to benefit from lower selling prices and borrowing costs. However, with sales picking up and a decrease in the number of new listings, there may be a slight tightening in market conditions.
Thinking about buying or selling? Now’s a great time! Market conditions are improving, mortgage rates are down, and opportunities are growing.

Contact LINA & TEAM today to get started on your real estate journey!