December 2025 Real Estate Market Update

2025 closed on a positive note for purchasers in the Greater Toronto Area, as the housing market shifted toward improved affordability.

Year-over-year, the average selling price for the month fell 5.1% to $1,006,735.

With sales also down by nearly 9% compared to December 2024, and new listings up 1.8% over the same time period, inventory was elevated, giving buyers greater room for negotiation.

Value could be found across all asset classes, though price drops were most significant among semi-detached properties, which experienced an 11.4% year-over-year dip to $957,357. Sales were down 6.9%.

Townhomes experienced a 6% decrease in average selling price compared to December 2024, sitting at $862,024. Sales activity saw a more pronounced pullback of 22.5%.

Detached properties recorded an average selling price of $1,302,980, a 5.9% loss from the same month last year. Sales saw a modest 1.7% decrease.

The condo apartment segment saw the average price settle at $628,029, down 7.3% from a year ago. Sales declined 11.2%.

With 2026 now underway, the stage is set for a more active market. The combination of lower borrowing costs and more favourable entry prices is creating a compelling window for those looking to enter the market. Once buyers are convinced the economy and employment are on solid footing, sales should increase as pent-up demand is finally satisfied.

If you would like to know how the real estate market performed in a specific neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.