May 2025 Real Estate Market Update
Active listings across the Greater Toronto Area (GTA) surpassed the 30,000 mark in May, for the first time in housing history.
Total active listings finished the month at 30,964, marking a 13% monthly increase, a 42% yearly increase and a staggering 89% above the proceeding 10-year average for May.
Despite this abundance of supply, buyer activity remained subdued, producing just 6,244 sales during the month, a pace that translates to approximately five months of inventory.
While this dynamic suggests a market leaning toward oversupply, the average sales price across the region rose by 1% on a monthly basis, reaching $1,120,879. However, prices remain 3.84% below levels recorded at this time last year.
Detached home prices ticked slightly lower to $1,425,264. Inventory levels reached 13,770, a 16% monthly increase and a 65% jump from the preceding 10-year monthly average. Sales increased by 17%, totalling 2,998.
Townhome values dipped below the $1 million threshold, with an average sales price of $995,662. Inventory remained above the 2,000 mark for the second consecutive month — the third time in history that this threshold has been met. With 2,287 properties for sale, inventory not only set a new high for the asset class, but also reflects a 115% increase from historical averages. Townhomes put under contract increased by 14% monthly, totalling 650.
Semi-detached homes sold for an average of $1,098,447, marking a 1% monthly gain. Inventory rose by 15% to 1,680 active listings, again setting a new high-water mark for the category. Sales increased by 10% month-over-month, with 617 properties put under contract.
Condo sellers continue to find themselves fighting over a small scattering of buyers. Condo inventory levels set a new record with 10,523 active listings at the end of May, representing a 120% increase compared to the 10-year average. Sales, on the other hand, totalled just 1,482 properties put under contract, a 36% detraction from historical monthly norms. Property values held firm, with an average sales price of $683,413.
As the GTA continues to grapple with record-high inventory and cautious consumer sentiment, buyers remain firmly in the driver’s seat. Unless confidence in the economic outlook improves — more specifically, there’s trade stability with the United States and/or real options to mitigate Canada’s reliance on the U.S. — and borrowing costs decline further, the market is likely to remain steady, yet restrained, through the summer months. For motivated buyers, this may represent one of the more favourable windows for negotiation seen in recent years.
If you would like to know how the real estate market performed in your neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.
