📊 GTA Real Estate Market Showing Signs of a Comeback | May 2025 Update

The Toronto Regional Real Estate Board (TRREB) has released its latest housing data for May 2025—and we’re seeing early signs of shifting momentum in the Greater Toronto Area real estate market.

So what’s going on out there? Let’s break it down.

🔄 Sales on the Rise (Month-over-Month)

In May, a total of 6,244 homes sold across the GTA. That’s 13.3% lower than this time last year, but here’s the key takeaway: sales were up 11.5% compared to April, marking the second month in a row of increased buyer activity.

This signals that buyers may be starting to re-enter the market—slowly, but surely.

🏘️ Inventory Climbing, But Not as Fast as Sales

We also saw 21,819 new listings hit the market—14% more than May 2024. Active listings now sit at 30,964, which is 41.5% higher year-over-year, giving us about 4.96 months of inventory.

While that sounds like a lot, the month-over-month increase in sales is outpacing new listings, pointing to a modest tightening in market conditions.

💰 Prices Trending Down = More Negotiating Power

For buyers, this is a window of opportunity. The average selling price in the GTA for May was $1,120,879, which is down 4.0% from last year.
The MLS Home Price Index (HPI) also declined:

• -4.49% GTA-wide

• -4.01% in the City of Toronto

This softer pricing, combined with growing inventory, is giving buyers more leverage at the negotiating table.

🕒 Homes Still Moving at a Steady Pace

The average days on market stayed consistent at 25, and homes sold for 99% of their asking price on average. Most transactions (about 70%) occurred in the $600K–$1.5M range, with 7.2% of sales above the $2M mark.

🔍 Price Breakdown by Property Type

Here’s how the different home types performed on average in May:

• 🏡 Detached: $1,425,264 (-5.4% YoY)

• 🏠 Semi-detached: $1,098,447 (-6.4% YoY, but +0.9% MoM)

• 🏘 Townhomes: $904,272 (-4.5% YoY)

• 🏢 Condos: $683,413 (-6.4% YoY)

Condos saw a slight month-over-month uptick—perhaps signaling the beginning of a turnaround in the segment.

📉 What’s Holding Buyers Back?

Despite improving affordability and lower borrowing costs, many buyers remain cautious. The broader economic outlook—especially around trade and stability with the U.S.—continues to influence buyer sentiment.

Once economic confidence rebounds, we could see a stronger surge in demand.

💬 Thinking About Buying or Selling? Let’s Talk.

Whether you're planning your first purchase, eyeing an investment opportunity, or thinking about selling your current home, timing and strategy are everything right now.

Let’s chat about your goals and make a plan that works in today’s evolving market.

📲 Michael Kelly
Top Realtor | Sutton Group Realty Systems
📍 Serving the Greater Toronto Area
📞 647-408-5226
🌐 michaelkellyhomes.com
📧 info@Michaelkellyhomes.com