Greater Toronto home sales fell again on an annual basis last month, as buyers remained on the sidelines much like they did for the majority of the year amid a lack of confidence in the economy.
The Toronto Regional Real Estate Board said Wednesday that 3,697 homes swapped hands throughout the Greater Toronto Area in December, down 8.9 per cent from the same month the previous year. Activity was also down 0.4 per cent on a seasonally adjusted basis from November.
The average selling price declined 5.1 per cent compared with a year earlier to $1,006,735, as the composite benchmark price, meant to represent the typical home, fell 6.3 per cent year-over-year.
There were 5,299 new listings throughout the GTA last month, up 1.8 per cent from a year earlier.
December saw 1,363 homes sold in the City of Toronto, a 4.2 per cent decrease from a year earlier. Throughout the rest of the GTA, home sales declined 11.4 per cent to 2,334.
The biggest drop was in sales of townhouses, with activity down 22.5 per cent year-over-year in the region. Condo sales were down 11.2 per cent in December, while semi-detached home sales fell 6.9 per cent and detached home sales decreased 1.7 per cent.
The December data was in line with broader trends in the GTA housing market.
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The board said economic uncertainty weighed on consumer confidence throughout much of 2025, as the 62,433 total sales for the year were down 11.2 per cent compared with 2024 — even as inventory remained elevated with new listings up 10.1 per cent year-over-year.
In February of last year, TRREB had forecast a 12.4 per cent increase in home sales for 2025, with 76,000 properties changing hands.
Local real estate agent Tom Storey said 2025 started out “feeling like it was actually going to be a different year.” Instead, activity levels were the lowest the GTA had seen since 2000, when the region’s population was much smaller, he noted.
“Obviously trade talk and everything else, whether that was the main culprit or not, certainly made a difference in just the confidence level of people making decisions.”
That dynamic was still advantageous to buyers as it allowed opportunity to negotiate lower selling prices. The average selling price was $1,067,968 in 2025, a decline of 4.7 per cent compared with 2024.
“People just wanted to see more certainty before they entered the market,” said Storey, a sales representative at Royal LePage Signature Realty.
“And when prices are going down, you kind of want to wait until at least they bottom out so you get in and they don’t keep going down.”
TRREB had initially forecast the average selling price for 2025 to rise 2.6 per cent year-over-year to $1,147,000.
The board’s president Daniel Steinfeld said improved affordability has set the market up for recovery in 2026.
“The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower,” said Steinfeld in a news release.
“Once households are convinced that the economy and labour market are on a solid footing, sales will increase as pent-up demand is satisfied.”
TRREB chief information officer Jason Mercer said reaffirmed trade relationships and large-scale domestic development projects would be key to boosting consumer confidence in the economy, leading to improved home sales.
“GTA households must be confident in their employment situation before committing to long-term monthly mortgage payments, even in this more affordable market,” he said.
Storey said many potential buyers are also keeping an eye on borrowing costs and what direction the Bank of Canada will take in 2026.
The central bank lowered its policy rate four times last year, bringing it down to 2.25 per cent. Economists expect the bank to leave the rate unchanged for much of this year as it seeks to balance inflation and economic growth.
“The Bank of Canada … has said they’re probably done cutting, barring something surprising happening in the economy,” said Storey.
“So I think that alone will actually help some buyers get in because a lot of buyers were waiting to see, ‘Well what if they cut once more? Maybe I’ll just wait for that.'”
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