Greater Toronto home sales fall 13.3 per cent in May: board

In May, the Toronto Regional Real Estate Board reported 6,244 homes sold across the Greater Toronto Area. That number marks a 13.3 per cent drop compared to May of last year. Even with fewer sales, home-buyers are finding more room to negotiate as more houses sit on the market.

New listings rose sharply in May. There were 21,819 homes listed, which is a 14 per cent increase from the same month in 2024. That growth in supply is giving buyers more options and more leverage when making offers.

Jason Mercer, the board’s chief information officer, noted that both the average selling price and the cost of borrowing are lower now than they were a year ago. He suggested that if everything else stayed the same, sales should be stronger than in 2024, but uncertainty about the economy is holding back many potential buyers.

The average price for a sold home dropped about four per cent year-over-year, landing at roughly $1,120,879. A composite benchmark price—designed to show the typical home—fell 4.5 per cent from May last year. That shift in price is making home ownership more reachable for some buyers.

Industry voices say first-time buyers are the most active group right now. With prices falling, interest rates lower, and more homes available, new buyers are finding the current market more favorable than before. One real estate professional described the mix of better affordability and more choice as “a perfect storm” for those entering the market.

Still, the wider economic picture may delay a full rebound. Mercer pointed to U.S. trade disruptions as a factor that has shaken consumer confidence in recent months. Until people feel more certain about trade and job stability, many might continue to hold off on major home-buying decisions.