GTA Housing Market Ends 2025 More Affordable — But Confidence Is Still the Missing Piece
January 2026 | GTA Real Estate Update
As we wrapped up 2025, the GTA housing market sent a very clear message: homes became more affordable, but buyer confidence hasn’t fully returned yet.
New data from the Toronto Regional Real Estate Board (TRREB) shows a market that’s still under pressure, but far more balanced than what we saw in previous years. For many buyers and sellers, this shift matters — because affordability is improving, even if activity remains cautious.
GTA Home Sales Slowed, While Inventory Increased
Throughout 2025, buyers continued to take a wait-and-see approach. Economic uncertainty, rising living costs, and concerns about job stability kept many households on the sidelines.
As a result:
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GTA home sales dropped 11.2% compared to 2024
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62,433 homes sold across the region
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New listings increased by 10.1%, reaching 186,753 homes
More listings combined with fewer buyers gave purchasers greater negotiating power — something we haven’t seen consistently in years.
Home Prices Declined, Improving Affordability
One of the most notable shifts in 2025 was pricing.
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Average selling price: $1,067,968
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Down 4.7% year-over-year from $1.12M in 2024
This combination of lower prices and easing mortgage rates helped improve overall affordability, especially for buyers who were priced out during the peak years.
According to TRREB President Daniel Steinfeld, these conditions are laying the groundwork for a potential rebound — but only once consumer confidence improves. Buyers need to feel secure about employment and the broader economy before committing to long-term mortgages.
December 2025: A Snapshot of the Trend
December’s numbers closely reflected the full-year story.
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3,697 home sales, down 8.9% from December 2024
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New listings rose slightly, up 1.8%
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Average selling price fell 5.1% to $1,006,735
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MLS® HPI Composite benchmark declined 6.3% year-over-year
On a month-over-month basis, sales dipped slightly compared to November, while listings continued to grow. Prices stabilized modestly, showing early signs that the market may be finding its footing.
What Needs to Happen for a Market Recovery?
TRREB’s Chief Information Officer Jason Mercer highlighted a key point: affordability alone isn’t enough.
Even with lower prices, buyers need confidence in:
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Job stability
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Economic conditions
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Long-term financial outlook
Without that confidence, many households will continue to delay buying decisions — regardless of pricing improvements.
At the same time, TRREB CEO John DiMichele has called on governments to provide tax relief and address rising living costs. Housing affordability, he noted, doesn’t exist in isolation. Reducing financial pressure on households could play a major role in restoring buyer confidence and stabilizing demand heading into 2026.
What This Means for Buyers and Sellers in the GTA
For buyers, today’s market offers more choice, stronger negotiating power, and improved affordability compared to recent years.
For sellers, strategy matters more than ever. Pricing accurately, understanding local market conditions, and positioning your home properly can make a significant difference in this more balanced environment.
The market isn’t in crisis — it’s recalibrating.
And as confidence returns, the buyers who’ve been waiting on the sidelines are likely to re-enter.
If you’re thinking about buying or selling in Mississauga or the GTA and want to understand what these numbers mean for your specific situation, I’m always happy to help you make sense of it.
Reach out anytime — clarity is power in this market.
Thinking of buying or selling? DM me - I'll guide you through it. Or want to know what homes are out there? DM me and I'll show you!
Maria Ho
Realtor ® | Team Lead
?? 416-858-9006
?? maria@mariahomes.ca
?? $200M+ in Real Estate Sold
?? Top 1% GTA
?? Skybound Realty Brokerage