Despite a seasonal lift in sales, Toronto’s housing market faced mounting pressure in May. Beneath the surface, deeper shifts are unfolding—especially in the condo market. Here’s what you need to know…
Introduction
Drifting Downward
Market Report
May 2025
RARE’s Economic Research Department meticulously examines TREB’s monthly data releases, distilling them into an easily digestible and insightful format within our market report.
Key Developments
In May, the Toronto housing market showed signs of softening as sales edged up but remained below long-term averages. New listings and active inventory reached seasonal and record highs, particularly in the condo segment, which further weakened market balance. House prices saw a modest increase, while the rental market stayed soft with only slight rent growth. New home sales fell to historic lows, although housing starts experienced a modest improvement. At the same time, mortgage rates and housing affordability held steady, while both unemployment rates and mortgage arrears increased at the regional and national levels.
Toronto Metro Sales Showed Modest Uptick
Toronto Metro sales rose to 6,244 in May but posted only a modest increase after seasonal adjustment, marking the weakest May level since at least 2006, excluding the pandemic period. This represented an 11% month-over-month increase, an 11% year-over-year decline, and a level 28% below the 10-year average. Sales typically rise between January and May.
New Listings Surge Further in May, Hitting Seasonal Peak
New listings rose in May to 21,819 – up 16% month-over-month, 17% higher year-over-year, and 19% above the 10-year average. It was the second-highest number for this month since at least 2006, with only 2017 being higher. New listings typically rise through spring, reaching a peak in May.