May 2025 Market Stats Market In Limbo

In May 2025, the Greater Toronto Area (GTA) housing market saw improvements in affordability compared to the previous year. Here are the key points:

Sales and Listings: GTA REALTORS® reported 6,244 home sales, down 13.3% from May 2024. New listings increased by 14% year-over-year to 21,819.

Market Conditions: Despite higher listings, sales saw a slight month-over-month increase compared to April 2025, indicating a tightening market.

Affordability: Average selling prices decreased by 4% year-over-year to $1,120,879. The MLS® Home Price Index Composite benchmark was down by 4.5%.

Economic Factors: Affordability improved due to lower average prices and borrowing costs. Economic confidence and stability in trade agreements were noted as critical factors influencing market dynamics.

Government and Industry Response: TRREB officials emphasized the need for government actions to enhance affordability, including reducing housing taxes, embracing innovative construction methods, and simplifying regulatory processes.

Future Outlook: Continued low inflation and potential rate cuts were highlighted as positive factors for prospective buyers and the housing market in general.

Overall, while affordability has improved in the GTA, localized market conditions and economic confidence remain significant considerations for prospective homebuyers.

BOC Rate Announcements 2025:

* Wednesday, Jan 29 (Cut .25% To 3.00%)

* Wednesday, March 12 (Cut .25% To 2.75%)

* Wednesday, April 16 (HOLD At 2.75%)

* Wednesday, June 4 (HOLD At 2.75%) 👎

* Wednesday, July 30

* Wednesday, September 17

* Wednesday, October 29

• Wednesday, December 10

The updated stats show that the number of active listing in Ontario has finally surpassed the high point all the way back in 2013.  Pricing has failed to drop significantly though and this is resulting in the number of transaction being close to 35% lower.  

This is a fantastic market if you are buying without selling, upsizing or looking for luxury waterfront.  Reach out to chat about these opportunities!