May 2025 GTA Real Estate Market Update

As we move into early summer, I wanted to share a quick update on the Greater Toronto Area real estate market for May 2025.

• Home Sales: GTA REALTORS® reported 6,244 home sales through TRREB’s MLS® System in May 2025. This marks a 13.3% decrease compared to May 2024.
• Average Price: The overall average selling price for a home in the GTA is now $1,120,879, representing a 4% decrease from May 2024.
• New Listings: We saw a significant increase in new listings last month, with 21,819 new properties entering the MLS® System – up 14% year-over-year. This has led to a substantial 41.5% increase in active listings, providing more choice for buyers.

While average selling prices are lower and borrowing costs have decreased, home sales haven’t picked up as expected. This can be attributed to a couple of key factors:

• Lack of Economic Confidence: Many potential buyers are holding back due to general economic uncertainty.
• U.S. Tariff Instability: The ongoing instability with tariffs involving the United States is also contributing to a hesitant market, as it impacts construction costs and overall economic sentiment.

We anticipate that once further interest rate cuts are implemented and the situation with the U.S. tariffs stabilizes, home sales will we’ll rebound. The increase in active listings is providing more options for buyers, and once confidence returns, this could drive a more active market.

I’ll continue to keep you informed about these important market trends. Don’t hesitate to reach out if you have any questions or concerns.

-Rosy Zheng

Your trusted Greater Toronto real estate professional