Here's how far Toronto home prices have plummeted since 2022 peak

Toronto's housing market quietly crossed a new milestone in December 2025 as prices continued to trend lower and buyers put their homeownership dreams on pause, according to new graphs from the Toronto Regional Real Estate Board (TRREB).

Average GTA home prices are now down 26 per cent from their peak in 2022, when COVID-era bidding wars drove property prices up across all housing types. Based on the data, house prices in the region are now roughly a quarter below their pandemic peak, as long negotiations have stalled sales.

According to TRREB's data, home sales declined last year when compared to 2024, and as listing inventories piled up, buyers were able to negotiate lower selling prices.

"The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower," said TRREB President Daniel Steinfeld.

Steinfeld noted that "Improved affordability has set the market up for recovery," adding that "Once households are convinced that the economy and labour market are on a solid footing, sales will increase as pent-up demand is satisfied." 

According to past TRREB data, the average selling price for 2022 was $1,189,850, which was up 8.6 per cent compared to $1,095,333 in 2021. Looking at December 2022 specifically, the average selling price was $1,051,216, representing a 9.2 per cent decline compared to the December 2021 average of $1,157,837.

In 2022, prices reached their peak in February, when the average selling price for all home types combined was up by 27.7 per cent to $1,334,544.

Prices were noticeably lower last year, with the average selling price being $1,006,735, representing a decline of 5.1 per cent compared to December 2024.

Despite lower home prices and greater affordability, sales have continued to fall across the GTA. Throughout 2025, there were 62,433 home sales through TRREB's MLS System, representing a decline of 11.2 per cent when compared to 2024. On the flip side, new listings grew to 186,753, up by 10.1 per cent year-over-year.

There were also only 3,697 home sales reported in December 2025, which is down by 8.9 per cent when compared to December 2024.

"Reaffirmed trade relationships and large-scale domestic economic development projects will be key for improved home sales moving forward," TRREB Chief Information Officer Jason Mercer added.

"GTA households must be confident in their employment situation before committing to long-term monthly mortgage payments, even in this more affordable market."