Written by Miguel Fernandez Morales | Published on June 5, 2025
The Toronto Regional Real Estate Board reported that 6,244 homes were sold in May 2025, down 13.3% year-over-year. Meanwhile, new listings reached 21,819 last month, up 14% from last year.
"Home ownership costs are more affordable this year compared to last. Average selling prices are lower, and so too are borrowing costs," said Jason Mercer, TRREB's chief information officer. "All else being equal, sales should be up relative to 2024." But he said global trade disruptions tied to the United States' tariff campaign has soured consumer confidence in the last few months, affecting home-buying decisions.
"Once households are convinced that trade stability with the United States will be established and/or real options to mitigate our reliance on the United States exist, home sales will pick up," Mercer said.
The housing market has been more fragmented, based on price point. "There are segments of the market such as the first-time homebuyers market that's still very active because those buyers are motivated to get into the market because affordability is obviously much better right now," said Cailey Heaps, CEO of the Heaps Estrin Real Estate Team in Toronto.
Heaps said lower housing prices from a year ago, combined with more options to choose from and lower borrowing costs have made the market "a perfect storm" to enter the housing market.
The Bank of Canada held its benchmark interest rate steady at 2.75% for the second time in a row, though the key rate has come down from its height last year of five per cent.
Contact me at 647-985-0348 or miguel@yourfamilyrealtor.ca