The Greater Toronto Area housing market concluded 2025 with a shift toward improved affordability, as the average selling price for the month moderated to $1,006,735, a 5.1 per cent decrease compared to December 2024. For the full calendar year, the annual average selling price was $1,067,968, down 4.7 per cent from the previous year. While annual sales volume dipped 11.2 per cent to 62,433 transactions due to economic headwinds, the market has entered a phase of stabilization. December saw 3,697 home sales, while new listings edged up 1.8 per cent year-over-year, contributing to an elevated inventory that has given buyers greater room for negotiation.
“The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower. This improved affordability has set the market up for a strong recovery,” said TRREB President Daniel Steinfeld. “Once households are convinced that the economy and labour market are on a solid footing, we expect sales to increase as pent-up demand is finally satisfied”.
Market performance across asset classes in December reflected an environment where buyers are increasingly finding value:
Detached properties recorded an average selling price of $1,302,980, a 5.9 per cent decline from last December. Sales for the month totalled 1,690, representing a modest 1.7 per cent decrease year-over-year.
The Condo Apartment segment saw the average price settle at $628,029, down 7.3 per cent from a year ago. Total sales reached, 1029 units, a 11.2 per cent decline compared to December 2024.
Townhomes experienced a 6 per cent year-over-year decrease in average selling price, now sitting at $862,024. Sales activity saw a more pronounced pullback of 22.5 per cent with 613 transactions.
The Semi-Detached market reported an average price of $957,357, an 11.4 per cent drop from the same period last year. Sales for this category totaled 323, down 6.9 per cent year-over-year.
As we move into 2026, the GTA market is characterized by a cautious but optimistic outlook. With trade relationships reaffirming and large-scale domestic projects on the horizon, the foundation for growth is firming. While buyers remain mindful of employment stability, the combination of lower borrowing costs and more favorable entry prices is creating a compelling window for those looking to enter the market. With continued focus on tax relief and housing supply from all levels of government, the stage is set for a more active and stable market environment that supports households across the region.