GTA Market Update – December 2025

Affordability Improves, Setting the Stage for Recovery

December wrapped up a year of transition in the Greater Toronto Area real estate market, with signs pointing to improved affordability and cautious optimism heading into 2026.

Prices Ease, Giving Buyers Breathing Room

The average selling price in December was $1,006,735—down 5.1% from the same time last year and 3.2% lower than November. This marks a continued trend of price moderation across all major home types:

Detached homes averaged $1.302M (↓5.9% YoY)

Semi-detached homes averaged $957K (↓11.4% YoY)

Townhouses averaged $862K (↓6% YoY)

Condos averaged $628K (↓7.3% YoY)

Benchmark prices also fell across the board, with condos and townhouses seeing the steepest year-over-year declines at over 8%.

Sales Activity Slows

Sales volume dropped 8.9% year-over-year and 26% month-over-month, with just 3,697 homes sold in December. Townhomes saw the sharpest pullback in activity, down 22.5% compared to last year.

Despite slower sales, new listings edged up slightly (↑1.8% YoY), and active listings rose 17.5%, giving buyers more choice and leverage. Homes also took longer to sell, with average days on market increasing to 41 from 34 in November.

What This Means for Buyers and Sellers

Lower prices and reduced mortgage rates have made homeownership more attainable for many. As TRREB President Daniel Steinfeld noted, “Improved affordability has set the market up for a strong recovery.” Once confidence in the economy and job market strengthens, pent-up demand is expected to drive more activity.

For buyers, this is a window of opportunity—especially with more inventory and less competition. For sellers, pricing strategically and preparing homes thoughtfully will be key in attracting motivated buyers.

Looking Ahead to 2026

With major infrastructure projects and renewed trade relationships on the horizon, the GTA market is laying the groundwork for growth. Government focus on housing supply and tax relief could further support stability. While buyers remain mindful of employment and economic trends, the current environment offers a more balanced playing field for households across the region.