Market Sees Inventory Surge While Buyer Demand Remains Soft
The Greater Toronto Area real estate market continued its cautious pace in May 2025. While sales volume improved slightly from April, overall demand remained subdued. According to the latest data from the Toronto Regional Real Estate Board (TRREB), total sales reached approximately 7,000 units, still trailing historic seasonal norms and confirming a market that remains in flux.
Sales Improve Slightly, But Still Below Average
In a typical spring surge, one might expect sales activity to climb well above 9,000 units. However, in May 2025, the GTA market posted just under 7,000 sales, a number that reflects modest month-over-month growth but is well below the long-term May average.
The key challenge continues to be affordability. With borrowing costs still elevated and many buyers sidelined, the pent-up demand seen earlier in the year has yet to fully materialize.
Listing Inventory Reaches New Highs
On the supply side, the market is showing increased activity. Over 18,000 new listings came online in May—the highest May total in several years, surpassing 2022, 2023, and 2024. This influx suggests that more homeowners are ready to sell, perhaps in anticipation of further market shifts or in response to rising holding costs.
Sales-to-New Listings Ratio (SNLR) Confirms Buyer’s Market
With sales comprising only about 36–38% of new listings, the SNLR has now fallen below 0.40—a common benchmark used to define a buyer’s market. This means that for every 10 homes listed, fewer than 4 are selling in the same month.
This widening gap between supply and demand provides leverage to buyers, who now enjoy greater negotiating power, more conditional offers, and longer timelines to make decisions.
Prices Hold Firm, But Growth Stalls
The average selling price across the GTA hovered around $1.125 million in May. This reflects a flat price trend—up slightly from early 2023 lows but down from the 2022 peak. Notably, the 12-month moving average shows a gradual flattening, meaning price volatility has significantly decreased.
The current market dynamic reflects a standoff between buyers and sellers: buyers are cautious, waiting for more clarity on rates, while sellers—especially those with equity—are holding their ground on price.
Trendline Insights
According to TRREB’s 12-month rolling data:
Sales are trending downward, despite seasonal bumps.
Listings are steadily rising, placing pressure on absorption rates.
Prices have leveled off, showing neither a crash nor a rebound.
Historically, when the SNLR dips below 0.4, prices tend to soften within a 1–2 month lag, especially in less competitive suburban markets.
What This Means for Buyers, Sellers & Investors
Buyers
This is one of the best environments in recent years for buyers to negotiate, especially on homes that have been sitting. Buyers with pre-approvals, flexibility, and patience can take advantage of reduced competition and increasing inventory.
Sellers
Those who need to sell must be realistic. The days of unconditional, over-asking offers are largely behind us. Listings that are priced appropriately, staged well, and professionally marketed are still moving—but patience is required, especially in areas with higher inventory.
Investors
For long-term investors, this is a strategic window to buy. Prices are stable, and future rent growth potential remains high. With interest rate cuts possible later in the year, this could be an ideal time to secure value before the next wave of demand.
Final Word
May 2025 confirms that the GTA housing market is firmly in correction territory—but not collapsing. With growing supply, stable pricing, and tempered demand, the market remains balanced yet cautious. Whether you’re a buyer, seller, or investor, success in today’s environment will come from strategic planning, realistic expectations, and local expertise.
Source: TRREB Housing Market Charts – May 2025
🏡 Ready to Start Your Real Estate Journey?
Whether you're planning to buy, sell, or invest, I’m here to guide you every step of the way — surprises and all.
📈 Looking to capitalize on today’s changing market?
Explore a wide range of specialized listings with access to powerful tools and search portals tailored to your needs:
· Stay ahead of the curve! Get the latest real estate news and insights right here.
📩 Need help navigating your options?
Reach out for expert advice and market insights:
Sami Chowdhury
BROKER
📧 Email: samichy@torontobase.com
🌐 Web: www.torontobased.com | www.torontobase.ca
Let’s make your next move a smart one!
Get more market insights here.
· GTA Condominium Market Analysis – April 2025
· Ontario Eliminates Tolls on Highways 412 and 418, Extends Gas Tax Relief
· Stay ahead of the curve! Get the latest real estate news and insights right here.
· Greater Toronto Area (GTA) Real Estate Market Update – April 2025
· Toronto Real Estate Market Update – March 2025
· Peel Region Real Estate Market Blog – March 2025
· Renting vs. Owning: How $2,500/Month Could Cost You $190,000
· Metro Vancouver Condo Inventory Could Rise 60 by Year End Report
