Toronto housing ends 2025 on downswing, but recovery could come this year: board

Greater Toronto home sales fell again on an annual basis last month, as buyers remained on the sidelines much like they did for the majority of the year amid a lack of confidence in the economy.

The Toronto Regional Real Estate Board says 3,697 homes swapped hands throughout the Greater Toronto Area in December, down 8.9 per cent from the same month the previous year, while activity was also down 0.4 per cent on a seasonally adjusted basis from November.

The average selling price declined 5.1 per cent compared with a year earlier to $1,006,735, as the composite benchmark price, meant to represent the typical home, fell 6.3 per cent year-over-year.

The board says economic uncertainty weighed on the GTA housing market throughout the year, which saw total sales fall 11.2 per cent compared with 2024, even as inventory remained elevated with new listings up 10.1 per cent year-over-year.

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That dynamic was advantageous to buyers as it allowed opportunity to negotiate lower selling prices.

TRREB president Daniel Steinfeld says improved affordability, which was also a product of lower borrowing costs, “has set the market up for recovery” in 2026 once buyers can be convinced the economy and labour market are back on solid footing.