GTA Real Estate Market Update: What 2025 Told Us and What It Means for 2026

GTA Real Estate Market Update: What 2025 Told Us and What It Means for 2026

The Toronto Regional Real Estate Board December numbers gave us a very clear picture of how the GTA housing market finished 2025 and, more importantly, where we are heading next.

Last year was defined by improving affordability, elevated inventory, and cautious buyers. That combination created a more balanced market than we had seen in years. Buyers had more choice and more negotiating power, while sellers had to compete harder for attention. Strategy, pricing, and presentation became more important than ever.

Across the GTA, 62,433 homes sold in 2025, which was an 11.2 percent decline compared to 2024. At the same time, new listings moved in the opposite direction, rising 10.1 percent to 186,753. That increase in supply kept inventory elevated throughout the year and put pressure on pricing. The average selling price for the full year finished at $1,067,968, down 4.7 percent year over year.

December followed this same trend. There were 3,697 sales across the GTA, down 8.9 percent compared to December 2024, while new listings increased to 5,299. The average selling price in December was $1,006,735, a 5.1 percent decline year over year. The MLS Home Price Index also dropped across both Toronto and the GTA, confirming that prices have meaningfully adjusted from their peak levels.

When we look at prices by property type, the story is very consistent. Detached homes averaged $1,379,666 in 2025, down just over 5 percent. Semi detached homes averaged $1,050,605, townhomes averaged $876,345, and condo apartments averaged $667,235, all showing similar declines. This tells us the market was not weak in just one segment. It was a broad based repricing across the entire GTA.

So what does this mean for buyers and sellers going into 2026?

For buyers, this environment offers opportunity. More inventory means more choice, less pressure to overpay, and greater room to negotiate. With borrowing costs trending lower, many buyers who were sitting on the sidelines in 2025 are now starting to re enter the market.

For sellers, the biggest takeaway is that the market has changed. Pricing based on what homes sold for two or three years ago no longer works. Homes that are priced correctly, prepared properly, and marketed strategically are the ones that are selling. Homes that miss the mark are sitting and often end up chasing the market down.

This is where having the right agent matters most. In a shifting market, success is not about luck. It is about reading the data, understanding buyer behaviour, and positioning a property to stand out. I work closely with my clients to analyze real time market trends, create a clear pricing and marketing strategy, and negotiate from a position of strength so they do not leave money on the table.

As we move into 2026, the foundation is in place for improved activity. Prices are more grounded, buyers are gaining confidence, and interest rates are becoming less of a headwind. Sellers who recognize this new reality and lead the market rather than chase it will be in the strongest position.

If you are thinking about buying, selling, or just want to understand what your home is really worth in today’s market, feel free to connect anytime.

Michael Kelly
Sutton Group Realty Systems
www.michaelkellyhomes.com