Toronto Regional Real Estate Board Reports December 2025 Market Trends: Sales Decline Amid Economic Uncertainty

Toronto Regional Real Estate Board — December 2025

In December 2025, the Toronto Regional Real Estate Board (TRREB) reports 3,697 home sales, reflecting an 8.9% decline compared to December 2024. The average selling price stands at $1,067,968, down 4.7% year-over-year, as elevated listing inventory continues to influence market dynamics.

Market Analysis

The Greater Toronto Area (GTA) housing market experiences a notable decline in sales for 2025, attributed to ongoing economic uncertainty that has dampened consumer confidence. With a total of 62,433 home sales recorded through TRREB’s MLS® System, this marks an 11.2% decrease from 2024. Meanwhile, new listings have increased by 10.1% year-over-year, reaching 186,753, which has contributed to a more favorable environment for buyers, allowing for greater negotiation on selling prices. The average selling price has also seen a downward trend, providing improved affordability for potential homebuyers.

Property Type Analysis

While specific sales data for property types is currently unavailable, the overall market conditions suggest that detached homes, attached/townhouses, and apartments are all experiencing similar pressures from increased inventory and declining prices. The general trend indicates that buyers are likely to find better deals across various property types as sellers adjust their expectations in response to the current market climate.

Regional Highlights

Regionally, the GTA continues to face challenges with elevated inventory levels, which have allowed buyers to negotiate prices more effectively. The MLS® Home Price Index (HPI) Composite benchmark has decreased by 6.3% year-over-year in December, indicating a broader trend of declining prices across the region. As economic conditions stabilize, there is potential for increased buyer activity as pent-up demand begins to surface.

For Buyers

For prospective buyers, this period presents an opportunity to enter the market as prices have become more negotiable. With the average selling price down and an increase in new listings, buyers are encouraged to conduct thorough research and consider their long-term financial commitments, especially in light of the current economic landscape.

For Sellers

Sellers should remain realistic about pricing strategies in the current market, as elevated inventory levels mean increased competition. It is advisable to work closely with a real estate professional to set a competitive price that reflects current market conditions, while also being prepared for potential negotiations with buyers.