Toronto Real Estate Market Update – May 2025

The weather’s finally cooperating—and so is the market… sort of.

April brought more activity than March, but year-over-year, the Toronto real estate market still lags behind. Many buyers are holding out for lower interest rates and a bit more stability before making their move.

📊 National Shift: Carney Wins, Market Watches

On the national front, Mark Carney’s federal election win brought some cautious optimism. If Canada’s trade relationship with the U.S. improves, we could see a bump in consumer confidence and a potential boost in market activity—especially as housing supply continues to grow.

📈 GTA Real Estate Market by the Numbers – April 2025

According to the Toronto Regional Real Estate Board (TRREB):

• Sales were down 23.3% year-over-year, with just 5,601 transactions across the GTA
  (For context: in April 2023, that number was over 9,000)

• Average home price was $1,107,463, a 4.1% decline from April 2024

• Inventory surged, with new listings up 54% compared to last year

More listings = more choice for buyers, and that extra leverage is pushing prices down in many neighbourhoods.

👀 What We’re Seeing on the Ground

From our experience (and those of our colleagues), all of this lines up.

The warmer weather brought out more buyers, but they’re being far more selective than in recent years. We’ve seen multiple-offer situations on homes in High Park, Leslieville, and even Whitby. But we’ve also watched other listings in those same areas sit on the market with little activity.

The difference? Usually a mix of pricing, location, and condition—and sometimes all three.

🏢 Condo Market Update: Still Struggling

The GTA condo market continues to face serious headwinds:

• Sales are down nearly 30%

• Prices have dropped 6.9% year-over-year

• A record number of new condo units are expected to hit the market this year

• Developers are pausing new builds, which could lead to tighter supply 3–5 years from now

There’s also a flood of low-quality inventory out there right now. It’s going to take time for the market to sort through it all (but that’s a rant for another day).

🧭 Bottom Line

The GTA housing market in May 2025 is unpredictable—but it’s not dead. It’s just different.

Whether you’re buying, selling, or just trying to understand what this all means for your plans, the key right now is timing, strategy, and clarity.

💬 Want to chat about your next move?

If you’re thinking about buying or selling in Toronto or the GTA, or just want a better sense of where things are headed—reach out anytime. We’re always happy to help you make sense of this ever-changing market.

👀 Want to compare where we were a year ago?

Take a look at our May 2024 market update.
Fair warning: it reads like I outsourced it while half asleep (because… I kind of did as we were knee deep in renovations! 😬)