Here's how far Toronto's home market plummeted in 2025

The Greater Toronto Area (GTA) housing market took a nosedive in 2025 after a decade and a half of high-flying condo sales and frenzied construction across the region.

It was a turbulent year for both developers and home sellers as a glut of supply and waning demand joined forces to send the market into a tailspin that has effectively ended the seemingly invincible condo boom.

New figures shared by the Toronto Regional Real Estate Board (TRREB) underscore just how bad things have gotten in the city — at least from the perspective of homeowners, developers, and investors.

A paltry 62,433 home sales recorded in 2025 marked a significant decline of 11.2 per cent compared to 2024 figures. That decline was mirrored by a double-digit increase in new listings, rising just over ten per cent in 2025 with a staggering 186,753 units put on the market.

The lack of demand combined with runaway supply led to decreases in home prices throughout the year. However, a year-over-year decline of just 4.7 per cent hardly put a dent in the affordability crisis many experts cite as a factor in the declining housing market. 

The GTA-wide annual average selling price in 2025 of $1,067,968, while a decent amount less than the $1,120,241 average selling price in 2024, is still far from attainable for most working-class Canadians.

Within the City of Toronto proper, the average home price declined from $1,105,169 in 2024 to $1,077,170 in 2025.

TRREB

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

"Improved affordability has set the market up for recovery," said Steinfeld, stressing 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."