Toronto Housing Market Report – May 2025
May 7, 2025 | Market Reports
Current Market Conditions
As of April 2025, the Greater Toronto Area housing market experienced an increase in home sales compared to March. A total of 18,836 new listings are now active, a 9.11% increase from the previous month. This growth in inventory suggests that buyers can be more confident in their home search, with more options available. Sellers are becoming more active, contributing to a stronger supply and more balanced conditions in the market.
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Demand and Interest Rates
Consumer demand remains steady, primarily due to ongoing economic uncertainty and borrowing costs. On April 16th, the Bank of Canada announced it would maintain its policy rate at 2.75%. The next rate announcement is scheduled for June 4th, 2025. Many prospective buyers are holding off on purchase decisions as they wait for greater clarity regarding future interest rate movements and the broader economic outlook. The recent federal election has introduced an additional layer of uncertainty, further dampening buyer confidence. Households are closely monitoring Canada’s evolving trade relationship with the United States, as improved trade dynamics could bolster consumer confidence.
Supply of Homes
One of the defining trends as the spring time is here, is the increase in housing supply which entered the market. New listings have risen 8.1% compared to April 2024, providing buyers with more choices compared to last year. Elevated inventory levels, along with slightly lower borrowing costs, are helping make monthly mortgage payments more manageable. As of April 2025, the average home price in the GTA was $1,107,463, representing a 4.1% decrease from the previous year which at this time was $1,155,219. This shift is making homeownership more accessible for many buyers and more defined confidence for sellers.
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Market Outlook
As more listings enter the market and prices show signs of softening, the path to homeownership may become more accessible. Seasonal momentum, fueled by warmer weather and a renewed sense of optimism, could further energize market activity. The Canada’s upcoming policy decisions could have the potential to unlock new opportunities for homebuyers, particularly for first-time and budget-conscious buyers eager to take their next step. With greater clarity on interest rates, buyer confidence is poised to rebound, setting the stage for a more dynamic and hopeful season in the housing market.
