December 2025 GTA Real Estate Market Update

As we step into a brand-new year, I hope 2026 has begun with positivity and renewed energy for you. With 2025 now behind us, it’s a great time to reflect on how the Greater Toronto Area housing market closed out the year and what may lie ahead.

A Year-End Market Shaped by Caution and Seasonality

December traditionally brings slower real estate activity, and 2025 followed that familiar pattern. Cooler winter weather, holiday schedules, and continued economic uncertainty all contributed to fewer transactions across the GTA. At the same time, higher inventory levels gave buyers more negotiating power, helping to keep pricing pressure in check.

December 2025 Market Highlights

In December 2025:

• Home sales reached 3,697, representing an 8.9% decline compared to December 2024.
• New listings totaled 5,299, up 1.8% year-over-year.
• The average selling price was $1,006,735, down 5.1% from $1,060,496 in December 2024.

These numbers reflect a market that remains cautious, balanced, and increasingly buyer-friendly.

How 2025 Performed Overall

Looking at the full year:

• Total home sales in 2025 were 62,433, down 11.2% compared to 2024.
• New listings reached 186,753, an increase of 10.1% year-over-year.
• The annual average selling price was $1,067,968, down 4.7% from 2024.

With more homes available and fewer sales, the GTA market gradually shifted toward better affordability for buyers throughout 2025.

Looking Ahead to Early 2026

As we move into early 2026, affordability improvements and increased inventory are expected to continue creating opportunities for buyers. Sellers, meanwhile, remain supported by strong long-term demand for GTA housing.

Much will depend on economic clarity, interest rate trends, and consumer confidence in the months ahead. If these factors stabilize, the market is well positioned for a more balanced and steady year.