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The Greater Toronto Area marked its third straight month of higher home sales compared with a year earlier, as the city’s real estate board says the market tightened in May.
A total of 6,583 homes in the region changed hands last month, up 6.3 per cent compared with May 2025, while sales also increased 10 per cent from April on a seasonally adjusted basis.
The Toronto Regional Real Estate Board said the average selling price was down 4.6 per cent year-over-year to $1,069,700, and the composite benchmark price, meant to represent the typical home, was down 6.7 per cent.
“Spring sales have been stronger than last year, reflecting improved affordability stemming from lower selling prices and borrowing costs,” TRREB president Daniel Steinfeld said in a news release.
“Sales are forecast to improve further as we move through the second half of this year. Recovery would be further bolstered by positive news on the trade front along with an easing of geopolitical tensions and related uncertainty.”
TRREB chief information officer Jason Mercer added that selling prices could start to grow in the back half of the year if sales continue to strengthen relative to listings, but buyers have “substantial negotiating power” for now.
There were 17,698 new listings on the market in May, down 18.9 per cent from last year.
WATCH | March saw year-over-year home sales in GTA go up for first time in 6 months:
GTA home sales up year-over-year for 1st time in 6 months: real estate board
Home sales in the GTA saw a bump in March compared to the same month a year before, according to the Toronto Regional Real Estate Board’s newest report. It also shows the average selling price dropped 6.7 per cent in March. CBC’s Kelda Yuen spoke with the board’s chief information officer about the latest outlook.
Inventory decreased 13.3 per cent as there were 26,927 total active listings in the GTA.
There were 2,377 sales last month in the City of Toronto, a 3.2 per cent increase from May 2025. Across the rest of the GTA, home sales were up 8.1 per cent to 4,206.
“As standing inventory has been absorbed, competition between buyers has likely increased in some neighbourhoods,” the board said. “This should see the price trend flatten and ultimately trend upwards in the months ahead.”
Most housing types saw increased activity throughout the region last month, led by a nine per cent year-over increase in detached home sales.
Townhouse sales were up 4.8 per cent while condo activity rose 4.2 per cent. Sales of semi-detached homes ticked 0.8 per cent lower.