GTA Home Sales Rise 6% in May as Prices Fall
The Greater Toronto Area housing market showed mixed signals in May, with home sales rising 6% year-over-year while average prices declined, according to data released Wednesday by the Toronto Regional Real Estate Board (TRREB).
Sales reached 8,900 units last month, up from 8,400 in May 2025. However, the average home price fell 2.5% to $1,125,000, compared to $1,154,000 a year earlier. The board attributed the price drop to a higher share of condominium apartments and townhouses in the sales mix, which tend to be less expensive than detached homes.
"Greater Toronto home sales up 6% in May as prices fall: real estate board" reported The Canadian Press. The data suggests that buyers are returning to the market as borrowing costs stabilize, but sellers are adjusting expectations in a more balanced market.
"Home sales picked up in May compared to the same period last year, which is encouraging," said TRREB President Jennifer Pearce. "However, the supply of listings remains elevated, giving buyers more choice and negotiating power."
New listings increased 8% year-over-year to 16,200, providing ample inventory for buyers. The average days on market extended to 28 days, up from 24 days in May 2025.
"While sales are improving, the market remains sensitive to interest rate decisions," said TRREB Chief Market Analyst Jason Mercer. "If borrowing costs ease further, we could see stronger demand in the second half of the year."
The condo apartment segment saw the largest price decline, with average prices falling 4% to $720,000. Detached home prices remained relatively stable, dropping only 1% to $1.45 million.
Regionally, sales in the City of Toronto increased 4%, while suburban areas like Peel and York regions saw gains of 7% and 8% respectively. Durham Region led with a 10% sales increase.
Economists note that the market is adjusting from the pandemic-era highs. "We're seeing a normalization after two years of extreme volatility," said BMO Economist Robert Kavcic. "Higher inventory and stable prices are creating a healthier environment for buyers."
The board expects sales to continue recovering as population growth and employment remain strong, but price growth will likely remain subdued until interest rates decline further.
