According to a recent report released on Wednesday, home sales in the Greater Toronto Area saw an 11.2% decline in 2025 compared to the previous year. The Toronto Regional Real Estate Board (TRREB) attributed this decrease to economic uncertainty affecting consumer confidence last year.
The report highlighted that listing inventory remained high throughout the year, leading to negotiations on selling prices and ultimately improving affordability for buyers. In 2025, realtors in the GTA recorded 62,433 home sales through TRREB’s MLS system, with new listings totaling 186,753, marking a 10.1% increase year-over-year.
The average selling price for homes in 2025 was $1,067,968, showing a 4.7% drop from the previous year’s average of $1,120,241.
Calls for Tax Relief to Address Cost of Living
TRREB president Daniel Steinfeld noted that the housing market in the GTA became more affordable in 2025 due to lower selling prices and mortgage rates. Steinfeld expressed optimism about the market’s potential for recovery, anticipating an increase in sales once consumer confidence is restored.
On the other hand, TRREB CEO John DiMichele emphasized the importance of tax relief from government entities to alleviate the cost of living for families and individuals. DiMichele stressed that implementing fair tax policies could boost consumer confidence and support economic stability.
Potential Boost in Home Sales from National Projects
TRREB’s chief information officer, Jason Mercer, suggested that federal initiatives aimed at enhancing the economy could positively impact the GTA housing market. Mercer emphasized the significance of reaffirmed trade relationships and domestic economic projects in driving improved home sales going forward.
Furthermore, Prime Minister Mark Carney’s announcement of nation-building projects in late 2025 aimed to bolster Canada’s economic self-sufficiency amidst challenges such as U.S. tariffs.
(Evan Mitsui/CBC)
Mercer stressed the importance of employment stability for GTA households before committing to long-term mortgage payments, even in the current more affordable market scenario.
Decline in Home Sales in December
Specifically in December 2025, home sales dropped by 8.9% compared to December 2024, with 3,697 reported transactions. New MLS listings for that month increased by 1.8% year-over-year, totaling 5,299.
The average selling price in December 2025 was $1,006,735, reflecting a 5.1% decrease from the previous December. The report indicated a slight month-over-month decline in December home sales compared to November 2025, alongside an increase in new listings.