Market Report | December 2025
Market Report | December 2025
Toronto’s real estate market enters a new era of opportunity—prices recalibrate, affordability improves, and the stage is set for a strategic resurgence in 2026.
The Greater Toronto Area housing market concluded 2025 in a period of recalibration, marked by softer pricing, subdued sales activity, and a noticeable improvement in affordability. Economic uncertainty throughout the year tempered consumer confidence, resulting in fewer transactions and a more cautious approach from buyers. At the same time, elevated inventory levels provided negotiating leverage, creating conditions that favor long-term stability and recovery.
For the full year, GTA REALTORS® reported 62,433 home sales through TRREB’s MLS® System, representing an 11.2 percent decline compared to 2024. New listings, however, increased by 10.1 percent year-over-year, reaching 186,753. This divergence between supply and demand contributed to downward pressure on prices. The annual average selling price settled at $1,067,968, a 4.7 percent decrease from the previous year’s $1,120,241. December mirrored these trends, with 3,697 transactions recorded—a drop of 8.9 percent compared to December 2024—while the average selling price fell to $1,006,735, down 5.1 percent year-over-year. The MLS® Home Price Index composite benchmark declined by 6.3 percent during the same period, underscoring the broader market adjustment.
Greater Toronto Area - Monthly Sales Activity
Price moderation was evident across all major housing segments. Detached homes averaged $1,302,980 in December, reflecting a 4.5 percent decline from the prior year. Semi-detached properties saw a sharper correction, with prices falling 12.2 percent to $957,357. Townhouses and condominium apartments also experienced declines of 9.9 percent and 7.2 percent respectively, bringing their average prices to $972,915 and $628,029. These adjustments, combined with easing mortgage rates, have improved affordability—a critical factor for prospective buyers navigating a high-cost environment.
Economic indicators provide additional context for these developments. Inflation remained elevated at 5.84 percent year-over-year, while Toronto’s unemployment rate held steady at 2.3 percent in November, signaling resilience in the labor market. The Bank of Canada maintained its overnight rate at 4.5 percent, and mortgage rates trended lower toward year-end, offering some relief to households and supporting the case for gradual recovery in 2026.
Looking ahead, the market appears poised for stabilization, contingent on renewed consumer confidence and macroeconomic clarity. Reaffirmed trade relationships and large-scale domestic economic development projects will play a pivotal role in restoring momentum. As affordability improves and pent-up demand begins to surface, sales activity is expected to strengthen. However, buyers remain highly sensitive to employment security and cost-of-living pressures, making government action on tax relief and housing policy an essential component of sustained recovery.
In summary, 2025 marked a transitional year for the GTA housing market—a period of adjustment that has laid the groundwork for future growth. For buyers, current conditions present an opportunity to enter the market strategically, particularly in segments where price corrections have been most pronounced. For sellers, competitive pricing and professional marketing will be critical to attract demand in an environment defined by choice and caution. As we move into 2026, the interplay between economic stability, policy support, and consumer sentiment will determine the pace and strength of the market’s rebound.
City of Toronto Monthly Sales
York Region - Active Listings
York Region - Monthly Sales
Regional Snapshot
Toronto
Average Price (Dec 2025): $1,006,735 (-5.1% YoY)
Sales: 1,363 transactions (-8.9% YoY)
Detached Homes: $1,498,079 average price
Condo Apartments: $628,029 average price (-7.2% YoY)
Durham Region
Average Price: $844,473
Sales: 455 transactions
Year-over-Year Price Change: approx. -8%
Inventory Trend: Months of inventory at 3.4, indicating balanced conditions
York Region
Average Price: $1,082,111
Sales: 671 transactions
Detached Homes: $1.74M+ in premium areas
Market Note: York remains a luxury-driven segment with strong demand for executive homes
Peel Region
Average Price: $937,012
Sales: 666 transactions
Detached Homes: $1.34M average
Affordability Factor: Peel offers competitive pricing compared to Toronto, attracting move-up buyers
Condo Market Highlights
Average Condo Apartment Price (GTA): $628,029 (-7.2% YoY)
Toronto Core: $663,227 average for condos in 416 area
Sales Volume: 1,690 condo transactions in December
