Greater Toronto Area home sales continued their downward trajectory in December, marking the third consecutive month of decline as economic uncertainty kept potential homebuyers on the sidelines. The Toronto Regional Real Estate Board reported that seasonally adjusted sales dipped 0.4% from November to 5,624 units, representing the lowest sales level since June.

December Market Performance

The housing market showed continued weakness across key metrics in December:

Annual Market Overview

The full year data revealed significant shifts in the Greater Toronto Area housing market, which encompasses Toronto and four surrounding regional municipalities:

Year-over-Year December Comparison

December's year-over-year performance showed continued market softening:

• Home price index fell 6.3%
• Sales declined 8.9%
• New listings increased 1.8%

Market Outlook and Economic Factors

Daniel Steinfeld, the board's president, noted that improved affordability has positioned the market for potential recovery. "The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower," Steinfeld stated. "Improved affordability has set the market up for recovery. Once households are convinced that the economy and labour market are on a solid footing, sales will increase as pent-up demand is satisfied."

The Bank of Canada has implemented supportive monetary policy, cutting its benchmark interest rate to a three-year low of 2.25% to bolster the economy, which has faced challenges from trade-related pressures. The combination of lower mortgage rates and declining home prices has created more favorable conditions for potential buyers, though economic uncertainty continues to influence market participation.

The Greater Toronto Area (GTA) real estate market showed mixed signals in September, with sales volume reaching its highest point since January while home prices continued their downward trajectory.

Sales Activity Surges

September saw a notable uptick in GTA home sales, with 5,765 units changing hands. This figure represents a 2.00% increase from August and marks the highest sales volume in eight months. Year-over-year, the sales activity demonstrated even more significant growth, rising by 8.50% compared to September of the previous year.

Persistent Price Decline

Despite the increase in sales, home prices in the GTA continued their downward trend. The home price index, a measure of the overall market value, fell by 0.50% to C$971,500 after seasonal adjustment. This decline is part of a broader trend, with prices either falling or remaining flat every month since November of the previous year. The year-over-year comparison reveals a more substantial 5.50% drop in prices.

Market Dynamics

The Toronto Regional Real Estate Board (TRREB) provided insights into the current market conditions:

• New listings increased by 4.00% year-over-year, indicating a slight improvement in inventory.
• While sales have improved over the past year, they remain below normal levels relative to the number of households in the GTA.
• The board suggested that additional interest rate cuts by the Bank of Canada could potentially reduce mortgage payments and further stimulate sales activity.

Market Overview

Looking Ahead

TRREB officials noted that while the market has shown some signs of recovery in terms of sales volume, it has yet to reach what they consider normal levels for the Greater Toronto Area. The suggestion of potential interest rate cuts highlights the significant role that monetary policy plays in shaping the real estate market.

As the market continues to evolve, potential buyers and sellers in the GTA will be watching closely to see if the increased sales activity will eventually stabilize or reverse the ongoing price declines. The interplay between sales volume, inventory levels, and pricing will be crucial in determining the market's direction in the coming months.