Annual home sales across the Greater Toronto Area declined in 2025 compared to the previous year amid ongoing economic uncertainty, which continued to dampen buyer confidence. At the same time, elevated listing inventory gave buyers more leverage, leading to more aggressive price negotiations and improved affordability. Lower selling prices and reduced mortgage rates helped make homeownership more attainable than in recent years, creating conditions that could support a market recovery once confidence returns.
Here are the detailed statistics from December:
GTA
The November to December period experienced another drop of around 3% in the Average Sales Price. This time it was -3.1% ($1,039,458 to $1,006,735), whereas 2024’s month-to-month drop was -3.5% ($1,106,050 to $1,060,496). With many buyers taking a month off their search to enjoy the holidays, this decrease is typical for the season. Comparing last month to 2024, December 2025’s Average Sales Price was 5.1% lower than in December 2024 ($1,060,496).
Total Sales
Sales declined further in December, following a 18.4% decline in November. After 5,010 homes sold in November, 3,697 changed owners last month (-26.2%). Looking at 2024, last month featured 8.9% fewer sales than December 2024 (4,056).
New Listings
New Listings fell for the fifth consecutive month. Following 11,134 new homes placed on the market in November, 5,299 were newly listed in December (-52.4). However, only 5,205 New Listings were processed in December 2024, 1.8% fewer than last month.
Active Listings
Active Listings fell from 24,549 to 17,005, a sizeable 30.7% drop. This fall isn’t out of the ordinary, given the previously mentioned tendency of buyers to take a month off; some Sellers don’t want to deal with a home sale or showings during the busy holiday season. Nevertheless, last month’s Active Listings were still 17.5% higher than December 2024 (14,476).
Toronto
The 416’s Average Sales Price steadied after a combined drop of $50K over the previous two months, edging lower from $1,036,362 to $986,542 (-4.8%). The AVP is also almost $50K less than the price in December 2024, which was $1,033,742.
Total Sales stayed below 2K, falling from 1,912 to 1,363 for a 28.7% decrease (Dec. 2024=1,174).
It was another significant fall in the New Listings category, dropping from 4,171 in November to 1,950 in December (-53.2%). Active Listings dropped from 9,365 in November to 6,456 last month (-31.1%). December of 2024’s New and Active Listings registered 1,783 and 6,232, respectively.
Toronto’s Sales-to-New-Listings Ratio (SNLR) remained at 34.1%, while in the GTA, the SNLR dropped to 33.4% from 33.7%.
Outlook
Looking ahead, a sales rebound will likely depend on greater economic certainty, stable employment, and long-term financial security. While affordability has improved, many households remain cautious about taking on long-term mortgage commitments. Strengthening economic fundamentals, reaffirming trade relationships, and easing cost-of-living pressures through supportive tax policies are seen as key factors in restoring confidence. As conditions stabilize, pent-up demand is expected to re-enter the market, supporting more balanced and sustainable activity across the GTA housing landscape.
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