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May 2025 Market Update: Inventory Surges, Prices Dip Across GTA

Toronto Housing Market Favors Buyers in 2025 as Listings Surge

June 4, 2025 – Toronto’s housing market reached a pivotal moment in May 2025, with active listings hitting levels not seen in nearly 25 years as buyers gained significant negotiating power amid sluggish sales and improving affordability. Here are the key takeaways from the latest TRREB Market Watch report:

📉 Sales & Inventory Dynamics

  • Sales dropped 13.3% YoY (6,244 vs. 7,206 in May 2024)
  • New listings surged 14% YoY to 21,819 – highest since March 2021
  • Active listings skyrocketed 41.5% YoY to 30,964 – the highest level since August 2002
  • Monthly sales rose 11.7% from April, marking a 2-month recovery trend

💰 Pricing Trends

  • Average price fell 4% YoY to $1,120,879
  • MLS® HPI Composite benchmark down 4.5% YoY
  • Detached homes led sales (2,998 units) but saw biggest price drop (-5.4% YoY)
  • Condo apartments suffered steepest sales decline (-25.1% YoY)

🏠 Property Type Performance (YoY Change)

|     Type      |  Sales | Avg Price |
|---------------|--------|-----------|
|   Detached    | -10.6% |   -5.4%   |
| Semi-Detached | -0.3%  |   -6.4%   |
|   Townhouse   | -9.8%  |   -4.5%   |
|   Condo Apt   | -25.1% |   -6.4%   |

📣 Industry Insights

TRREB President Electris Barry-Sponds noted: “Homebuyers have benefited from greater choice and improved affordability this year – but each neighborhood has its own dynamics.”

Chief Information Officer Jason Mercer highlighted economic concerns: “The issue is a lack of confidence in trade stability with the U.S. Once resolved, sales will pick up. Further rate cuts would also help.”

🔍 Key Context

  • Mortgage rates dipped slightly: 3-year fixed at 6.05% (▼), 5-year at 6.09% (▼)
  • Bank of Canada rate held at 2.8%
  • Days on market surged: Avg. LDOM up 31.6% to 25 days, PDOM up 44.4% to 39 days

🏙️ Regional Highlights

  • Toronto Central saw highest average price ($1,242,145) despite 30.3% sales-to-new-listings ratio
  • Durham Region showed strongest seller leverage with 101% avg. SP/LP ratio
  • King Township had longest market exposure (Avg. LDOM 48 days)

The Bottom Line

While affordability has improved with lower prices and borrowing costs, buyer hesitancy persists amid economic uncertainty. With inventory at generational highs and properties taking longer to sell, the market firmly favors buyers – though regional variations remain significant. Any resolution to trade tensions or further rate cuts could quickly shift dynamics.

Need expert advice on navigating the market? Contact Upstate Realty today to discuss your next move! 🏡📉📈

🔹 Call us at (416) 581-8000
🔹 Visit our website: www.upstaterealty.ca

Source: TRREB Market Watch, May 2025 | Data as of June 4, 2025