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Toronto Market Report Summary

• The average selling price of a home in Toronto decreased by 4.5% year-over-year to $1,012,800 in May 2025.
• The average selling price of a single-family home in Toronto decreased by 4.8% year-over-year to $1,240,600 in May 2025.
• The average selling price of a townhouse/multiplex in Toronto decreased by 5.1% year-over-year to $755,500 in May 2025.
• The average selling price of a condo in Toronto decreased by 7.0% year-over-year to $593,200 in May 2025.
• The average rent in Toronto decreased by 7.0% year-over-year to $2,606 for May 2025.
• June 30, 2025: Today’s lowest mortgage rate in Toronto is for a 5–year fixed.

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Composite Home Prices

Single-family Home Prices

Townhouse and Multiplex Prices

Condo Prices

Toronto Housing Market Summary

Data from the Toronto Regional Real Estate Board (TRREB) indicates that the average price of resale residential homes sold across Toronto in May 2025 was $1,012,800, and it decreased of 4.5% compared to a year ago.

TREBB also reported a sales-to-new-listings ratio (SNLR) of 29%, indicating a buyers market in Toronto for May 2025.

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Signs of Stabilization Emerge in Toronto as Home Buyers Remain Cautious

After months of hesitation driven by trade tensions and economic uncertainty, Toronto’s housing market is starting to show early signs of recovery. According to the Toronto Regional Real Estate Board (TRREB), home resales increased 8.4% month-over-month in May 2025 on a seasonally adjusted basis, marking the second consecutive monthly gain. While market sentiment remains fragile, this improvement could signal a gradual rebuilding of confidence as we head into the second half of the year.

Still, the broader picture remains weak. TRREB realtors reported 6,244 home sales in May, down 13.3% from May 2024. That puts overall activity among the lowest for the month in recent decades, with some segments now nearing 30-year lows.

Toronto Sales for Houses Stuck at Historic Lows, Prices Trending Down

Low-rise freehold house sales, including detached, semi-detached, and townhomes, were down 5% compared to last May, and remain at their lowest May levels in three decades, excluding the 2020 lockdown period. The average house price in the Toronto area was $1,326,418, down 6% year-over-year, while the median price dropped 7% to $1,150,000. The median offers a more stable read, avoiding distortions from unusually high or low sale prices.

Active house listings surged 52% over the past year, and new listings rose 23%. This imbalance pushed the months of inventory (MOI) for houses to 4.3, within the range of a balanced market but rising steadily. This signals that sellers are losing pricing power, and downward pressure on prices may persist.

Toronto Condos Show Sharpest Pullback in Over Two Decades

Condo sales were hit even harder, falling 23% year-over-year to their lowest May level in 20 years (again, outside the early COVID-19 period). The average condo price was $702,389, down 7%, and the median price also declined 7% to $625,000. New condo listings rose 8%, while active listings jumped 36%. The MOI rose to 7.2, a clear indication that Toronto’s condo market is oversupplied, with listings now far outpacing demand.

This shift has made offers increasingly unsuccessful and extended the time properties sit on the market, even in previously hot downtown neighbourhoods. Buyer fatigue and pricing uncertainty are adding to the slowdown.

Toronto Buyers Regain Control Amid Mounting Inventory

Buyers now enjoy a selection of homes not seen in decades. Total inventory across property types has reached multi-year highs, forcing sellers to adjust. Average and median prices are down across the board, and even with slight month-over-month gains in May, few expect a near-term price recovery unless confidence returns quickly.

● May 2025 home sales: 6,244 (–13.3% YoY)
● Average house price: $1,326,418 (–6%) | Median: $1,150,000 (–7%)
● Average condo price: $702,389 (–7%) | Median: $625,000 (–7%)
● House MOI: 4.3 | Condo MOI: 7.2
● Active house listings: +52% | Active condo listings: +36%

A Confidence Crisis, Not Just a Housing One

Toronto’s housing market slowdown is being driven by more than mortgage rates. Global uncertainty, trade disruptions, and growing concerns about job stability are keeping many would-be buyers on the sidelines. As TRREB’s Jason Mercer put it, even with prices and borrowing costs lower than last year, “the issue is a lack of economic confidence.”

This hesitation isn’t unique to any one neighbourhood. The slowdown is now broad-based, and while monthly data hints at early stabilization, the pace of recovery will depend on more than rate cuts. Consumers need to feel secure in their employment before making major financial decisions, such as buying a home.

Impact on Mortgages and Monetary Policy

Toronto’s cooling market, reflected in slumping sales and rising inventory, is a clear signal to the Bank of Canada that housing demand remains soft despite lower inflation and modest rate relief. If this weakness persists, it could strengthen the case for additional rate cuts later in 2025. For Toronto homebuyers, there is a rare opportunity to negotiate in a market flush with options. Renewers may face less upward pressure on appraisals, and refinancers, particularly those in detached or suburban markets, should move quickly if they want to capitalize on current equity before house prices potentially dip further.

Month-over-Month Market Expectations for Toronto

Transactions –  Number of Sales

New Listings

Real Estate Market

The sales to new listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market in which buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market. 

Market Breakdown By Property Type for Toronto

Annual Changes to Composite Home Prices in Toronto

Toronto Market Rents Summary

The average rent in Toronto was $2,606 for the month of May 2025, which decreased by 7.0% on a year-over-year basis.

The average rent for a bachelor apartment in Toronto was $0 for the month of May 2025, which 0 by 0% on a year-over-year basis.

The average rent for a 1-bedroom apartment in Toronto was $2,302 for the month of May 2025, which decreased by 7.0% on a year-over-year basis.

The average rent for a 2-bedroom apartment in Toronto was $2,933 for the month of May 2025, which decreased by 11.0% on a year-over-year basis.

The average rent for a 3-bedroom apartment in Toronto was $2,302 for the month of May 2025, which decreased by 11.0% on a year-over-year basis.

How Does Renting Compare with Homeownership in Toronto?

Each $100,000 in mortgage balance costs an average of $521.15 per month on nesto’s lowest fixed 5-year rate at and $530.60 per month on nesto’s lowest adjustable 5-year rate at . For each $100,000 in mortgage balance, a 0.25% change in Canada’s policy rate impacts the monthly payment by $13.74. Rates used for calculation are those offered on insured purchases with less than a 20% downpayment on a 25-year amortization. Canada’s policy rate is 2.75%, and nesto’s prime rate is set to 4.95%.

Rental Price Changes by City

Rental Price Changes by Province

Rental Price Growth by Housing Type

Frequently Asked Questions on Toronto Housing Market Outlook for 2025

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