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Let’s skip the spin. 2025 wasn’t the recovery year TRREB predicted, and it wasn’t the crash some were hoping for. It was something more complicated—a year where affordability improved on paper while most would-be buyers stayed firmly on the sidelines, watching and waiting.
If you bought, sold, or even just thought about making a move in 2025, you felt it: the uncertainty, the hesitation, and that nagging question of whether the bottom had been reached. Here’s what actually happened in Toronto real estate and what it means for your next move.
Looking Ahead to 2026? Check out our guide to What’s Changing in Toronto Real Estate in 2026 to read about new financing rules and laws that will affect us this year.
The Big Picture: GTA-Wide Numbers
The Toronto Regional Real Estate Board (TRREB) released its year-end data, and the headlines weren’t pretty. Here’s what happened:
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total Home Sales | 70,308 | 62,433 | -11.2% |
| New Listings | 169,604 | 186,753 | +10.1% |
| Average Selling Price | $1,120,241 | $1,067,968 | -4.7% |
| December Average Price | $1,060,496 | $1,006,735 | -5.1% |
| Days on Market | 55 days | 65 days | +18% |
| Months of Inventory | 3.2 months | 4.6 months | Balanced |
Those 62,433 sales? That’s the lowest since 2000—down nearly 50% from the peak year of 2021. Meanwhile, sellers flooded the market with almost 187,000 new listings, creating the kind of buyer-friendly conditions we haven’t seen in years. The result: homes sat longer, prices were negotiated down, and the market tilted decisively in buyers’ favour.
Breaking It Down by Property Type
Not all homes took the same hit. Here’s how different property types performed:
| Property Type | GTA Avg Price | 416 Avg Price | 905 Avg Price | YoY Change |
|---|---|---|---|---|
| Detached | $1,302,980 | $1,498,079 | $1,239,882 | -5.9% |
| Semi-Detached | $957,357 | $1,122,309 | $857,237 | -11.4% |
| Townhouse | $862,024 | $976,161 | $832,199 | -6.0% |
| Condo Apartment | $628,029 | $663,227 | $555,110 | -7.3% |
The surprise biggest loser? Semi-detached homes, which dropped 11.4%—the steepest decline of any property type. These “middle market” homes got squeezed from both sides: not affordable enough for first-time buyers, not spacious enough for move-up buyers willing to pay a premium.
Detached homes still dominated sales, making up 46% of all transactions. Most activity happened in the $1M to $1.25M range, though the luxury segment (200+ sales above $2M) remained surprisingly active.
Condos continued their slide, dropping 7.3% as the investor exodus accelerated. With an average price of $628,029, they’re more “affordable” than ever—but that hasn’t translated to buyer enthusiasm (yet).
The Sales Drought
Here’s a number that should make you do a double-take: 62,433 home sales across the entire GTA in 2025. The last time we saw sales this low? The year 2000—when the GTA population was 4.6 million instead of today’s 7 million.
Let that sink in. We added nearly 2.5 million people to this region, and we’re selling the same number of homes we did a quarter century ago.
TRREB had predicted 76,000 sales for 2025. They missed by nearly 20%. The culprits? Economic uncertainty around tariffs and trade, job market jitters, and a collective “wait and see” mentality that kept buyers on the sidelines even as prices softened.
Low sales volume doesn’t mean a broken market—it means a frozen one.
Supply Without Demand
While buyers stayed home, sellers showed up—in record numbers.
TRREB recorded 186,753 new listings in 2025, up 10.1% from 2024. The GTA ended 2025 with 4.6 months of supply, right in the balanced range of 3-5 months supply.
The condo segment tells an even more dramatic story. Condo apartment listings remained stubbornly high all year, while sales couldn’t keep pace—creating a supply glut that’s still working itself out.
Days on Market: The Waiting Game
The average property listed for sale in 2025 took 65 days to sell, up from 55 days in 2024 – an 18% increase.
But averages hide the real story. Geography matters enormously. Toronto East remains the most liquid pocket for sellers, moving units in just 33 days on average. Durham Region was even faster—Whitby led the GTA at just 23 days.
Tips for Buyers: Look at homes that have been sitting for more than 21 days—that’s where the negotiating leverage lives. Sellers who’ve been on the market for a month are often more motivated to deal than fresh listings still testing the waters. The frantic “offer by Monday or lose it forever” pressure is largely gone. Conduct proper inspections, review status certificates thoroughly, negotiate on price—the market now rewards patience over panic.
Neighbourhood Winners & Losers
2025 wasn’t a uniform correction—some areas held their ground while others took it on the chin. Here are the top and bottom neighbourhoods, based on increase/decrease in average price between 2025 and 2024.
| MLS District | Neighbourhoods | Price Change (YoY) |
|---|---|---|
| C09 | Rosedale, Moore Park | +6.80% |
| C11 | Leaside, Thorncliffe Park | +6.76% |
| C02 | Yorkville, The Annex | +4.24% |
| C03 | Forest Hill South, Deer Park | +1.43% |
| W09 | Humber Heights, Edenbridge, Kingsway South | -0.93% |
| MLS District | Neighbourhoods | Price Change (YoY) |
|---|---|---|
| C13 | Don Mills, Parkwoods-Donalda | -12.85% |
| E07 | Scarborough Village, Guildwood, West Hill | -12.21% |
| C15 | Bayview Village, Don Valley Village | -12.04% |
| E06 | Birchcliffe-Cliffside, Oakridge | -11.93% |
| E08 | Scarborough Town Centre, Agincourt | -9.55% |
The Pre-Construction Crisis
While resale prices grabbed headlines, the real drama happened in the pre-construction market. And it’s ugly.
| Metric | 2025 Reality |
|---|---|
| Full-Year New Home Sales | 5,314 units (lowest in 45 years) |
| New Condo Sales | 2,067 units (down 89% from 10-year avg) |
| Projects Cancelled (2025) | 28 projects / 7,243 units |
| Unsold Inventory | 26 months of supply |
| Projected 2029 Completions | ~1,000 units (vs 29,200 in 2025) |
With 77% of condo investors losing money and an average monthly loss of $597, the investor class that fueled the condo boom has vanished.
The supply crunch this creates is real: construction starts are at a 27-year low and projects continue to be cancelled. Whatever you think about today’s prices, this supply gap will matter in 3-5 years when these units would have delivered.
What This Means For You
For Buyers
You have leverage you haven’t had in years. Homes are selling below asking on average, days on market have increased, and sellers are motivated. The “sweet spot” under $900K is where you’ll find the most competition, but even there, bidding wars aren’t the norm If you’re looking at condos, the investor exodus means motivated sellers and room to negotiate—especially on smaller units.
For Sellers
Pricing is everything. Overpriced listings are sitting for months—sometimes getting relisted multiple times. The gap between listing days on market (what agents report) and property days on market (actual time including failed listings) is 50% in Toronto. Translation: many homes are taking far longer to sell than the stats suggest. If you’re in a desirable family neighbourhood (East York, Leslieville, High Park, Leaside), you may still see competitive interest—but only if you’re priced right.
For Investors
The condo rental math still doesn’t work for most investors at current prices. But opportunity exists for those with capital: bulk condo purchases at steep discounts, pre-construction assignments from distressed investors, and family-sized rentals (which have held value far better than micro-units).
Looking Ahead to 2026
2025 was a year of reset. Not the crash bears predicted, not the recovery bulls hoped for—just a long, grinding correction that brought prices closer to reality and gave buyers leverage they haven’t had in years.
Most forecasters expect a modest real estate rebound in 2026. The Bank of Canada’s rate cuts have improved borrowing conditions, but the fundamental issue remains: incomes simply haven’t kept up with home prices, even after this correction.
The condo overhang won’t clear until mid-2026 at earliest, with tons of inventory sitting on the market. But the cancelled pre-construction projects mean future supply is constrained—setting up potential price pressure in 2027-2028.
Whether you’re buying, selling, or waiting it out, the key is realistic expectations and a solid strategy. The market doesn’t care about what you paid in 2021 or what your neighbour sold for in 2022. It only cares about what today’s buyer is willing to pay.
Related: New mortgage rules, land transfer tax changes, and policy shifts are coming in 2026. Read our complete guide to What’s Changing in Toronto Real Estate in 2026 to understand how these changes could affect your buying or selling plans.
