Market Report
TORONTO & REGIONToronto Region Market Update, December 2025
The December Toronto and Region residential resale data is now in (Toronto Regional Real Estate Board, TRREB), and it does not paint a pretty picture. To quote from T.S. Eliot’s 1925 poem The Hollow Men, 2025’s residential market is ending “Not with a bang but a whimper”. Sales were down, inventory was elevated, average sale prices declined, and properties remained on the market longer than pre-pandemic days.
In December 3,697 homes traded hands, 8.9 percent fewer than the 4,056 that were reported sold in 2024. As 2025 came to an end, there were 17,005 properties on the market available to buyers, 17.5 percent more than at year-end 2024. The average sale price continued its decline, coming in at $1,006,735, 5.1 percent less than the average sale price of $1,060,496 achieved last year. Properties remained on the market for 41 days (on average) before they sold, almost 14 percent longer than the 36 days it took properties to sell in December of 2024.
On an annualized basis the average sale price declined by 4.7 percent. It started the year at $1,120,241 and ended the year at $1,067,968. The average sale price for all homes sold, including condominium apartments, peaked in 2022 at $1,193,771. In February of 2022 the average sale price came in at – gasp! – $1,334,062. December’s average sale price of $1,006,735 represents a 25 percent decline from the peak average sale price achieved in February 2022.
During 2025, 186,753 new listings came to market. (This figure is slightly deceptive in that potentially as many as 35 percent of these properties were re-listed properties, homes that had already been on the market but did not sell. Notwithstanding this double counting, 186,753 new listings is still an extraordinary high number.) This high volume of inventory meant buyers had the benefit of time, choice, and negotiating leverage.
In total there were 62,433 sales reported throughout the Toronto Region in 2025. That compares to 70,274 properties reported sold in 2024, a double-digit decline of 11.4 percent. In perspective, this figure is even more startling. In 1998, 66,876 properties were reported sold. At that time condominium apartment construction was still in its infancy, with condominium apartments forming a small part of the overall market. In 1996 and 1997 sales totalled 69,530 and 66,876, respectively. At that time the reporting boundaries of TRREB were smaller and the population of the Toronto Region was almost half of what it was in 2025.
There were a number of factors responsible for the worst resale market in decades. At the beginning of 2025 expectations for an improved market were high. These expectations were dashed by the new American administration. The resale market thrives on certainty, and flounders on economic anxiety and uncertainty. The tariff chaos and uncertainty initiated by the American administration immediately caused the resale market to stall, a position that remained unchanged throughout the year.
In addition to macro-economic anxieties, affordability, or lack thereof, negatively impacted the buying decision of consumers, and in particular homebuyers. During 2025 the Bank of Canada reduced its overnight benchmark rate on three occasions to 2.25 percent. Although this was helpful, it had a marginal impact on borrowing rates. Again in 2025 fixed mortgage costs were driven by bond yields and not by the rate established by the Bank of Canada. At year end five-year uninsurable mortgage interest rates were 4.45 percent. Three-year rates were 3.95 percent, and for those borrowers with higher tolerance levels, variable rates at 3.60 percent were available. Although by historical comparison these rates do not seem unreasonable – in 1996 five- year mortgage interest rates were almost 8 percent – in 1996 the average sale price was only $205,249. Other parts of Canada, where average sale prices are substantially less expensive – for example, Winnipeg where the average sale price of ground level properties is approximately $450,000 and around $300,000 for condominium apartments – are less impacted by prevailing borrowing costs, and should experience more positive and favourable market results in 2026.
The downward market cycle that the Toronto Region has been struggling with since the pandemic peak of 2022 does not appear to be at an end. Macro- economic uncertainty continues as we move into 2026. There is concern about the Canadian economy, jobs and consumer costs, and borrowing costs remain high, impacting affordability, particularly in the Toronto Region. The greater Vancouver area will experience, and has experienced, similar negative affordability issues that confront the Toronto Region.
There is general consensus amongst industry leaders, economists, and real estate pundits that in 2026 the Toronto Region will see modest growth in home sales, but unfortunately, at the expense of average sale prices. It is expected that average sale prices will decline by 3 to 5 percent in 2026, reducing the average sale price in the Toronto Region to approximately $1,000,000 by year end, a number reminiscent of average sale prices for the Region on the eve of the Covid-19 pandemic in early 2020. Condominium apartment prices, which finished the year at $663,227 in the City of Toronto, and $555,110 in the 905 Region, can expect an even steeper decline than ground level properties.
Optimistically sales for 2026 might come in at 70,000 properties reported sold. This would be a 12 percent increase compared to the 62,433 homes that changed hands this year. To achieve these numbers international politics need to be stable, positive economic growth will be required, and we need to see affordability improvement. Unless all these positive factors come together, sales in the range of 66,000 to 67,000 are more realistic, clearly an improvement over the annus horribilis that the home ownership market experienced in 2025, and perhaps the first step towards a market that reflects the Toronto Region’s growth and population over the last decade.
Related Articles For Home Buyers and Sellers
In This Issue:
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How To Get Pre-Approved And Know What You Can Afford Without Hurting Your Credit - Secure your buying power with a lender-ready plan, avoid common credit mistakes, and shop with confidence.
Read More » -
Pricing Your Home Right From Day One Why Overpricing Backfires - Learn why the first price is the most important, and how to attract serious buyers without leaving money on the table.
Read More » -
Contingencies Decoded What They Mean For Your Deal - Understand the conditions that protect both sides, and how to negotiate them without derailing the transaction.
Read More »
How To Get Pre-Approved And Know What You Can Afford Without Hurting Your Credit
Summary
Pre-approval is one of the strongest advantages a buyer can have, but the steps you take during the process can help or hurt your credit. This report explains how lenders evaluate you, what to prepare before you apply, and how to protect your score while you comparison-shop. You will also learn how to set a realistic budget that includes more than just the mortgage payment. Use this guide to get fully ready to make an offer quickly and confidently.
Pre-approval is not just a box to check. It is a practical roadmap that tells you what a lender is willing to support, what your monthly payment range could look like, and how strong your offer will appear to a seller.
Here is how to get pre-approved the right way, and how to protect your credit while you do it.
1. Know What Pre-Approval Actually Means
A true pre-approval is based on a lender review of your income, debts, credit, and down payment. It is different from a quick online estimate. Sellers and listing agents treat a real pre-approval as proof that you are ready to proceed.
2. Gather the Right Documents Before You Apply- Recent pay stubs and proof of income
- Two years of tax documents (as applicable)
- Bank statements showing down payment funds
- Current debt information (loans, credit cards, lines of credit)
Ask your lender about rate-shopping windows. In many cases, multiple mortgage inquiries within a short period are treated as one inquiry for scoring purposes. Still, avoid unnecessary new credit applications, and do not make big changes to balances right before applying.
4. Decide on a Comfortable Budget, Not Just a MaximumYour approved amount is not a recommendation. Build a budget that includes property taxes, utilities, insurance, and any condo or HOA fees. Leave room for maintenance and lifestyle needs so ownership stays comfortable after closing.
Conclusion:
A strong pre-approval improves your negotiating position and reduces stress once you find the right home. When you prepare properly and protect your credit, you can act quickly without overextending your budget.
Pricing Your Home Right From Day One Why Overpricing Backfires
Summary
Pricing your home correctly is one of the most important decisions you will make as a seller. Overpricing can reduce showings, cause your listing to go stale, and weaken your negotiating position. This report explains how buyers interpret price, how online search ranges affect exposure, and how to use local comparables to set a smart number. The goal is to create strong early momentum that leads to better offers.
The first weeks on the market are your best opportunity to attract motivated buyers. A price that is even slightly out of line can reduce showings and shift the conversation from value to discounts.
Use these principles to price strategically from day one.
1. Buyers Compare You to the Best Alternatives
Buyers shop online with filters. If your price sits above similar options, you may be skipped before anyone sees the home in person. Pricing to match the market ensures you appear in the right searches and shortlists.
2. The Market Responds FastA well-priced home often earns more showings quickly, which can lead to stronger offers. A slow start is a signal to buyers that you may be overpriced, even if nothing is actually wrong with the property.
3. Use Comparable Sales, Not Opinions- Focus on recent sold properties that are truly similar
- Adjust for differences such as renovations, lot size, and condition
- Review active listings to understand your competition today
A price that lands just under common search thresholds can increase visibility. Your agent can help you choose a number that fits buyer search habits without underselling the home.
Conclusion:
The right price attracts the right buyers. When you price accurately from the start, you create urgency, maintain leverage, and improve your chances of a smooth closing.
Contingencies Decoded What They Mean For Your Deal
Summary
Contingencies are the conditions in a contract that must be satisfied before a transaction can close. They can protect buyers and sellers, but they also create timelines and negotiation points that need to be managed. This report explains the most common contingencies, how they affect risk, and how to use them strategically. With clarity on terms and deadlines, you can reduce surprises and keep the deal moving.
A contingency is a contract condition that must be met for the agreement to move forward. Understanding contingencies helps buyers protect their downside and helps sellers evaluate how likely an offer is to close.
- Financing Contingency
Gives the buyer time to secure a mortgage. Sellers should confirm the quality of the pre-approval and the timeline for final approval.
- Inspection Contingency
Allows the buyer to investigate the home. The best outcomes come from clear communication and focusing on meaningful issues rather than cosmetic items.
- Appraisal Contingency
Protects the buyer if the home appraises below the offer price. Strong offers often plan for this possibility before it becomes a surprise.
- Title and Document Review
Ensures ownership and legal status are clear, and that key documents such as condo or HOA materials have been reviewed.
Conclusion:
Contingencies are not just fine print. They are the guardrails of the deal. When both sides understand the timelines and risks, transactions close with fewer last-minute issues.