Real estate activity across the Greater Toronto Area slid to levels not seen in a quarter century during 2025, underscoring deep challenges for sellers and ongoing hesitation among buyers. Toronto home sales fell to roughly 62,400 transactions for the year, a steep drop from more than 127,000 sales recorded in 2021. The last time activity dipped lower was in 2000, when about 61,000 homes changed hands, despite a far smaller population base.
“These are spectacularly low numbers when you consider how much the region has grown,” said Ron Butler of Butler Mortgage, pointing to the scale of the slowdown.
For many sellers, the downturn has personal consequences. Hossein Khodadadi, who purchased a home in Stouffville in July 2022, has yet to find a buyer after listing the property twice over two years. Mortgage rates climbed soon after he completed renovations, limiting buyer interest.
“I’m afraid I won’t be able to cover my mortgage and living expenses,” Khodadadi said. “My mortgage is up for renewal this summer, and I need to sell before then. It’s been frustrating.”
Data from the Toronto Regional Real Estate Board shows December offered little relief. A total of 3,697 homes sold across the GTA during the month, down 8.9 percent from a year earlier and 0.4 percent lower than November on a seasonally adjusted basis. The average selling price fell 5.1 percent year over year to $1,006,735. The composite benchmark price declined 6.3 percent, reflecting continued pressure on values.
The price of a typical home dropped one percent in December to $942,300, placing prices near early 2021 levels. Since peaking in February 2022, benchmark values have fallen 26.5 percent, a decline of roughly $339,600.
A veteran Brampton real estate expert with more than 20 years of experience said the pain in the market has been uneven. “The maximum heat is being felt by people driven by greed, who bought homes at astronomical prices hoping for quick gains,” the expert said. “Many of those sellers are now forced to accept heavy losses because the market no longer supports those valuations.”
While sales slowed, supply expanded. New listings in December reached 5,299, a five-year high for the month. Active listings climbed 17.5 percent from last year to 17,005, marking a record level for December. This imbalance gave buyers more leverage and room to negotiate.
Economic uncertainty weighed on the market throughout 2025. Total annual sales dropped 11.2 percent from 2024, even as new listings rose 10.1 percent.
TRREB president Daniel Steinfeld said lower borrowing costs and softer prices improved affordability and positioned the market for a potential rebound. National Bank of Canada economist Daren King offered a guarded assessment.
“Cumulative home sales in 2025 declined by 7.7 percent compared to 2024, making it the quietest year since 2000,” King said. “Rate cuts alone have not revived a market many buyers still view as unaffordable.”
As 2026 approaches, the GTA housing market faces a clear test. Inventory stands high, prices remain under pressure, and buyer confidence has yet to return.
