Current Market Conditions

The Greater Toronto Area (GTA) housing market continues to gain small increments of momentum, showing signs of a delayed spring market as we step into summer. May saw a surge of 21,819 new listings, up a strong 15.8% from April, flooding the market with fresh opportunities for buyers and investors alike. And buyers are taking action as 6,244 homes were sold in May, marking a solid 11% month-over-month increase. Meanwhile, the average home price in the GTA climbed to $1,120,879, a 1.2% rise from April’s average home sale of $1,107,463.

Link below for previous Toronto Housing Market Reports

• Toronto Housing Market Report – May 2025
• Toronto Housing Market Report – April 2025
• Toronto Housing Market Report – March 2025

Demand and Interest Rates

On June 4, the Bank of Canada held its policy rate steady at 2.75%, giving buyers a moment of clarity in an otherwise uncertain environment. The next rate announcement is set for July 30, and market watchers are paying close attention. Home sales were down 13.3% year-over-year compared to May 2024, reflecting a cautious sentiment driven by broader economic uncertainty and ongoing rate sensitivity. Yet there are signs of a small shift happening as May marked the second consecutive monthly increase in sales this year, showing that some buyers are regaining confidence and stepping off the sidelines.

Supply of Homes

Toronto’s current housing market is experiencing an oversupply of new property listings relative to the number of sales, giving buyers an advantage. With more inventory available, buyers now have multiple similar properties to choose from in their preferred neighborhoods. This increased selection means they can negotiate with several sellers at once, leveraging competition to secure better terms and pricing.

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Market Outlook

The GTA housing market is in a transitional phase, steadily finding its rhythm. While economic trends, policy decisions, and shifting buyer sentiment continue to shape the market, one thing is clear: it’s moving forward, although at a cautious, measured pace. For homebuyers, there’s no better time to make a move. With more options available, less competition, and greater negotiating power, the opportunity to find a better deal has never been stronger. Whether you’re buying, selling, or investing, this volatility can be your chance to act and take advantage of a shifting market!