Inventory Soars, Prices Hold but Pressure Mounts
May is traditionally one of the busiest months for GTA Real Estate Market (Greater Toronto Area). Yet, this year, the expected “spring awakening” failed to materialize.
GTA Real Estate Key Market Highlights
Home Sales: 6,244 Units (Down 13.3% YoY)
Sales in May edged up by over 600 units from April, narrowing the year-over-year decline to 13% (from 23% in April). Despite this modest rebound, overall market activity remains muted, and buyer sentiment continues to be cautious.
New Listings: 21,819 Units (Up 14% YoY)
Seller activity remains robust, with new listings rising 14% year-over-year. More homeowners and investors are bringing properties to market, adding to the inventory.
Active Listings: 30,964 Units (Up 41.5% YoY)
This is not only the highest level in more than a decade, but also an all-time record. The growing supply-demand imbalance is fueling competition among sellers, while giving buyers unprecedented choice.
Average Selling Price: $1,120,879 (Down 4% YoY)
Despite the supply surge, prices remain stable. The average home price increased by $14,000 from April (a 1.2% month-over-month gain), yet remains 4% below last year. For the 11th consecutive month, prices have hovered around $1.1 million, underscoring a market deadlock between cautious buyers and reluctant sellers.
Average Days on Market: 39 Days (Up 44.4% YoY)
Properties are taking longer to sell—up by 12 days compared to last year, reaching a multi-year high. This suggests buyers remain hesitant, but sellers are also holding firm on price, often opting to extend mortgage terms or adjust payments rather than reduce prices sharply.
Months of Inventory: 5.0 Months
IInventory continues to climb, moving from 4.9 to 5.0 months. This further cements a buyer’s market, giving purchasers increased negotiation leverage and leaving sellers with a difficult choice: adjust expectations or risk lengthy listing times.
GTA Real Estate Market Outlook: What could break the deadlock?
Bank of Canada Interest Rate Cuts
The Bank has held steady for two consecutive decisions. Should rate cuts resume, affordability could improve, potentially reigniting buyer and investor activity.
Macroeconomic Stability & Job Market Outlook
If inflation moderates and employment strengthens, consumer confidence and purchasing power will improve. Conversely, continued economic headwinds may further dampen demand.
International Trade Conditions
A return to stability in global trade and investment could boost confidence in real estate as a long-term asset.
✅ If these factors align positively, we could see pent-up demand released later in the year, driving a market rebound.
❌ If not—if rates stay elevated and economic momentum remains weak—market pressure may intensify, with the risk of prices breaking below the current support range.
Published on: 2025-06-09
Read More:
GTA Real Estate Market Watch April 2025
GTA Real Estate Market Watch March 2025
GTA Real Estate Market Watch February 2025
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