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The Toronto Regional Real Estate Commission said in a press release Wednesday that 6,244 homes were sold in May, down 13.3% year-on-year.
Meanwhile, the new list last month hit 21,819, an increase of 14% from last year.
“The cost of home ownership this year is more affordable compared to the last time. The average selling price is lower, and so is the cost of borrowing,” TRREB CIO Jason Mercer said in a press release. “All the others are equal and sales should be relative to 2024.”
But he said global trade disruptions related to the U.S. tariff movement have deteriorated consumer confidence in the past few months, affecting decisions to buy homes.
“Once families are convinced that trade stability and/or real options with the United States will be established to alleviate our dependence on the United States, home sales will increase,” Mercer said.
Cailey Heaps, CEO of Toronto’s Pile Esterling Real Estate Team, said that based on the price point, the housing market is more diversified.
“There are some segments of the market, such as the first-time home buyer market, that are still very active because these buyers are motivated to enter the market because now the affordability is obviously much better.”
Heaps said lower housing prices, coupled with more options and lower borrowing costs, have brought the market a “perfect storm” into the housing market, compared to a year ago.
Bank of Canada stabilized its benchmark interest rate at 2.75% for the second time Wednesday, although key interest rates have fallen by 5% from last year’s height.
Pile suggests that those who want to buy a home should not try and market timing.
“I wouldn’t hesitate to think pricing will drop,” she said. “I think the Toronto market will remain stable and be ready to rebound in the coming months.”
Heaps said the market seems to be more balanced than the last three years.
“We are ready to rebound,” she said. “What I want to say is that if it is not in 2025, it should be in the first half of 2026.”
The average selling price fell to $1,120,879 from the same period last year, while the comprehensive benchmark price representing typical homes fell 4.5% year-on-year.
Last month, home sales in Greater Toronto fell in line with other Canadian city markets as the number of residential properties in the Vancouver area changed hands in May. Meanwhile, Calgary dropped 17%.
In the City of Toronto, sales last month were 2,315, down about 15% from May 2024. Home sales also fell to 3,929 throughout the rest of the GTA.
The biggest decline in the apartment market was 25.1% of sales, followed by homes sold, with sales down 10.6% and townhouses down 9.8%.
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Last modified: June 4, 2025
