SALES COMMENTARY The mood and emotions that best describes buyers and sellers within the Toronto Real Estate market in February is…“Impatience.” In February, Toronto home sales saw a yearly increase of 17.9% and a monthly surge of 32%. Additionally, new listings rose by 37% compared to last month and by 33.5% compared to the same period last year. After over a year of uncertainty resulting from rate increases, buyers who had remained on the sidelines have now recalibrated and adjusted their expectations for the type of property they can afford to purchase. This is a clear indication that many buyers are beginning their search, as there is only so long we can keep the real estate market on pause.
May 2025 Market Report

May 2025 Toronto Real Estate Market Update

Signs of Momentum Return Post-Election

The Toronto real estate market continued to navigate uncertainty in April 2025, but signs of recovery are beginning to emerge. With the federal election now behind us, some of the hesitation seen earlier this year is starting to lift, giving way to renewed buyer interest and market activity.

Sales Remain Soft, But Listings Climb

According to the Toronto Regional Real Estate Board (TRREB), a total of 5,601 homes were sold in April 2025—a 23.3% decline compared to April 2024. However, new listings increased by 8.1% year-over-year, reaching 18,836. This rise in inventory is giving prospective buyers more choice across a wide range of property types.

Despite the drop in transactions, market engagement began to increase toward the end of the month. Agents reported more showing activity and a growing number of offers, particularly in well-priced freehold segments.

Pricing Trends and Affordability

The average selling price in April was $1,107,463, marking a 4.1% decline from a year earlier. On a seasonally adjusted basis, prices also dipped slightly from March, continuing a gradual correction across the market.

In the condo sector, the trend was even more pronounced. The average resale condo sold for $682,019 in April—down 2.6% year-over-year and nearly 16% below the 2022 peak. Prices are now only 3.5% higher than they were in April 2020, underscoring a prolonged adjustment period for the condo segment.

Developers Offer Incentives as Inventory Grows

In the new condo market, developers are leaning heavily on incentives to encourage buyers, including cash-back credits of up to $100,000, temporary price reductions, rental guarantees, and flexible deposit structures. With nearly 24,000 unsold units on the market—58% above the 10-year average—competition is fierce.

Condo completions are on track to break records again in 2025, further adding to supply. While this creates more selection, it also places downward pressure on pricing and rents in the short term.

Rental Market Trends

The condo rental market continues to favor tenants. Rents fell 4.2% year-over-year, while active rental listings surged by 30% to 6,385 units. Even with rising availability, the rental market remains relatively balanced, with 1.4 months of supply—just slightly above the long-term average.

What’s Next?

The market’s recent softness is still largely driven by affordability concerns and economic uncertainty, but that may soon shift. With two interest rate cuts expected later this year, borrowing costs could decrease, potentially revitalizing buyer confidence and triggering more sales activity heading into summer.

What This Means for You

For Buyers:
This is a uniquely advantageous time for buyers—especially first-time homeowners. Inventory is high, prices have softened, and incentives from developers are generous. With interest rate cuts likely on the horizon, acting sooner may give buyers a head start before renewed demand returns to the market.

For Sellers:
While it remains a competitive landscape, there’s growing activity in well-priced segments. Sellers who align their pricing with market expectations are starting to see more offers. If you’re considering listing, keep an eye on rate announcements and take advantage of increasing buyer interest as the market stabilizes post-election.

At your convenience here is the Market Report May 2025

DASH Property Management

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