Written by Miguel Fernandez Morales | Published on January 12, 2026
TORONTO, ONTARIO – January 7, 2026 — Home sales across the Greater Toronto Area (GTA) eased in 2025 compared to 2024, as ongoing economic uncertainty caused many buyers to pause. At the same time, a higher number of listings gave buyers more choice and leverage, leading to more negotiable prices and improved affordability.
"The GTA housing market became more affordable in 2025 as both home prices and mortgage rates moved lower," said Toronto Regional Real Estate Board (TRREB) President Daniel Steinfeld. "This improvement in affordability has laid the groundwork for a market recovery. As confidence in the economy and job market strengthens, we expect sales to pick up as pent-up demand returns."
Over the full year, GTA REALTORS® reported 62,433 home sales through TRREB's MLS® System, an 11.2% decrease from 2024. New listings rose 10.1% year-over-year to 186,753, providing more options for buyers. The average selling price in 2025 was $1,067,968, down 4.7% from $1,120,241 in 2024.
December 2025 saw 3,697 home sales, down 8.9% compared to December 2024, while 5,299 new listings came to market — a modest 1.8% increase year-over-year.
The MLS® Home Price Index (HPI) Composite benchmark declined 6.3% year-over-year in December. The average selling price for the month was $1,006,735, a 5.1% decrease compared to the same time last year.
On a seasonally adjusted basis, December sales dipped slightly from November, while new listings increased. The MLS® HPI edged lower month-over-month, although the average selling price showed a small uptick.
"Looking ahead, stronger trade relationships and major domestic economic projects will help support improved housing activity," said TRREB Chief Information Officer Jason Mercer. "Even in a more affordable market, households need to feel secure in their jobs before committing to long-term mortgage payments."
TRREB CEO John DiMichele emphasized the importance of policy support: "We encourage governments at all levels to take action to provide meaningful tax relief and help address the rising cost of living. Families need financial breathing room to afford housing while managing everyday expenses."
Contact: 647-985-0348 | miguel@yourfamilyrealtor.ca