May 2025 Toronto/GTA Residential Market Update

As of May 2025, the Greater Toronto Area (GTA) real estate market is presenting favourable conditions for buyers and renters, characterized by increased inventory, softened prices, and cautious optimism about future interest rate cuts.

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For Buyers: A Market Favouring Negotiation

1. Increased Inventory and Buyer’s Market Dynamics

• Home sales in April 2025 totalled 5,601, marking a 23.3% decline compared to April 2024.

• New listings rose by 8.1% year-over-year, reaching 18,836, providing buyers with more options.

• The sales-to-new-listings ratio (SNLR) stood at 30%, indicating a buyer’s market.

2. Price Adjustments Across Property Types

• The average selling price in the GTA was $1,107,463 in April 2025, down 4.1% from April 2024.

• Detached homes averaged $1.43 million, a 5.6% decrease year-over-year.

• Condo apartments saw a 6.9% decline, averaging $678,048.

3. Opportunities in New Developments

• Developers are offering incentives such as cash-back credits up to $100,000, rental guarantees, and flexible deposit structures to attract buyers amid high inventory levels.

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For Renters: Stabilizing Rents and Increased Choices

1. Rental Market Trends

• The average rent in Toronto decreased by 5.0% year-over-year to $2,606 in April 2025.

• A surge in rental listings has led to more options for tenants, easing competition.

2. Investor Activity and Rental Supply

• Investor-owned condos account for 39% of Ontario’s condo market.

• Some investors are re-entering the market, anticipating future rate cuts and rental demand rebound.

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Outlook: Cautious Optimism Ahead

• The Toronto Regional Real Estate Board (TRREB) forecasts a total of 76,000 home sales in 2025, up by 12.4% over 2024, with average prices expected to increase moderately.

• Anticipated interest rate cuts later in the year may boost buyer confidence and market activity.