Toronto home sales hit a 25-year low in 2025. What’s in store for this year?
December 2025 TRREB recap
Toronto real estate demand failed to find its footing in 2025, despite some of the friendliest buyer and price conditions seen in recent years.
According to the Toronto Regional Real Estate Board (TRREB), a total of 62,433 homes sold over the course of the year, an -11.2% decline compared to 2024. That’s the lowest in terms of sales volume in 25 years, according to analysis by the Toronto Star.
Combined with a 10.1% surge in new listings, that’s had a decent pull-down effect on prices, with the average selling amount coming in at $1,067,968 – an annual decrease of -4.7%. Compared to the peak price recorded during the pandemic heydays in February 2022, that reflects a decline of 24.5%.
The year’s tepid conditions were capped off by a particularly chilly December; the month posted an -8.9% year-over-year decrease in sales, with 3,697 properties trading hands, while the number of new listings rose by 1.8%. The average home price for the month was $1,006,735, down 5.1% compared to the same time frame last year.
Buyers still plagued by high prices and uncertainty
While market conditions have considerably softened, the fact that the average Toronto home price remains stubbornly over the million-dollar mark indicates housing affordability is a top challenge for many in the region.
Buyers have also remained firmly on the sidelines throughout the year due to economic uncertainty from ongoing tariff threats and other geopolitical upheaval; in other words, they didn’t feel keen to make a major financial investment amid a backdrop of potential job loss.
In the statement released with the December data package, TRREB President Daniel Steinfeld suggests this hesitation will be temporary. Lower interest rates introduced throughout the year have further bolstered affordability, and have primed the market for a rebound, he argues.
“The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower. Improved affordability has set the market up for recovery,” Steinfeld states.
TRREB’s Chief Information Officer Jason Mercer adds that market recovery will hinge on a return in buyer confidence as they see evidence of a stable economy and sustainable purchasing power.
“Reaffirmed trade relationships and large-scale domestic economic development projects will be key for improved home sales moving forward,” he states. “GTA households must be confident in their employment situation before committing to long-term monthly mortgage payments, even in this more affordable market.”
The 2025 housing market: By the numbers
Source: Toronto Regional Real Estate Board
Year to date, double-digit percentage sales declines occurred for most home types, with the condo segment bearing the brunt of the downturn, with transactions down 14.7% at 16,425 units, and the average price dropping -5.1% to $667,235.
That was followed by townhouses, with sales down -12.4%, and prices dipping similarly, by -5% to an average of $876,354.
Even detached houses – which have historically been the mainstay of Toronto sales activity in terms of volume – also experienced a sharp decline, with sales down -10.6%. However, this segment continues to be the busiest in terms of demand, with a total of 28,545 properties trading hands, even at an elevated average price of $1,379,66 (-5.2% year over year).
Semi-detached houses experienced the smallest declines over the course of the year with sales down just -3.3% with 5,896 properties sold, at an average price of $1,050,605 (-4.5%).
Will Toronto-area home prices drop further in 2026?
As TRREB’s analysts point out, a 2026 sales rebound will depend heavily on homebuyer confidence. However, the current macroeconomic landscape is still unstable, and it’s also looking likely that the interest rate cuts that took place over 2024 and 2025 have come to an end.
The Bank of Canada has strongly signalled that it will be holding its trend-setting benchmark interest rate for the foreseeable future, as inflation appears to be stabilizing, and the economy continues to perform well, despite ongoing trade challenges. That means it’s unlikely that variable mortgage rates will drop further. Fixed mortgage rates are also set for stagnancy as bond yields remain high.
That will limit any additional affordability relief for buyers, especially in a pricey market like Toronto, and likely to be a lag on sales in the coming months. That could set the stage for prices to cool further.
However, as Steinfeld notes, there are a number of buyers who’ve been cooling their heels on the sidelines, who are keen to make their move.
“Once households are convinced that the economy and labour market are on a solid footing, sales will increase as pent-up demand is satisfied,” he states.
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Penelope Graham, Head of Content
Penelope has over a decade of experience covering real estate, mortgage, and personal finance topics and her commentary on the housing market is featured on both national and local media outlets.