The May 2025 Toronto real estate market stats have been released, and while headlines may paint a dramatic picture, a closer look at the data tells a more balanced story—especially when comparing the Greater Toronto Area (GTA) to the City of Toronto itself.
A Tale of Two Markets: GTA vs. Toronto
The media has focused heavily on the fact that May 2025 marked the second slowest May on record for the GTA, with only May 2020 being slower. However, it's important to clarify that the GTA includes a wide area beyond Toronto proper. When we isolate the numbers for the City of Toronto, a different trend emerges.
May 2025 was actually the strongest sales month of the year so far within the city, even surpassing April. This continues a pattern of steady month-over-month increases in sales as we move further away from the uncertainty surrounding the recent election.
Prices Continue to Rise in the City
Since January 2025, the average price of a home in Toronto has increased by approximately $175,000—an almost 20% rise. On a month-over-month basis, detached and semi-detached homes saw price gains from April to May, while townhouses experienced a slight dip. Condo prices remained mostly flat, with only a minor change of around $1,000.
Interest Rates and Tariffs
The Bank of Canada kept the overnight rate unchanged through May, and this remained the case with the June announcement as well. However, other economic factors are beginning to play a role. A new steel tariff was introduced on June 4, which could have downstream effects on construction costs and pricing trends.
Condos Still Lead in Market Share
Condos continue to represent a significant portion of the market—about 40% of all sales in Toronto. Despite this, the condo segment remains a buyer’s market, with approximately 6.8 months of inventory on hand.
On the other hand, semi-detached and detached homes in sought-after neighbourhoods are still seeing strong interest, with multiple offers occurring on well-priced and desirable properties. While not all are selling on offer night, many are, and often at competitive prices.
Shifting Inventory Levels
Inventory is a key metric to watch. For detached homes, inventory rose to 3.87 months in May, suggesting a slightly slower pace. Semi-detached homes also saw an increase, moving from 2.12 to 2.23 months. Townhouses, however, saw a significant decrease in available inventory—down to 2.5 months—putting more negotiating power in the hands of sellers.
This shift may influence pricing in the townhouse segment moving forward.
The Takeaway
While the headlines may suggest a sluggish market, the numbers for the City of Toronto tell a more nuanced story. Sales are up, prices have shown solid growth since January, and specific property types are still in high demand. Condos remain more favourable for buyers, but inventory changes across all segments suggest that the landscape is shifting.
For those considering a purchase or sale, understanding the specifics of your property type and neighbourhood is more important than ever.
A Tale of Two Markets: GTA vs. Toronto
The media has focused heavily on the fact that May 2025 marked the second slowest May on record for the GTA, with only May 2020 being slower. However, it's important to clarify that the GTA includes a wide area beyond Toronto proper. When we isolate the numbers for the City of Toronto, a different trend emerges.
May 2025 was actually the strongest sales month of the year so far within the city, even surpassing April. This continues a pattern of steady month-over-month increases in sales as we move further away from the uncertainty surrounding the recent election.
Prices Continue to Rise in the City
Since January 2025, the average price of a home in Toronto has increased by approximately $175,000—an almost 20% rise. On a month-over-month basis, detached and semi-detached homes saw price gains from April to May, while townhouses experienced a slight dip. Condo prices remained mostly flat, with only a minor change of around $1,000.
Interest Rates and Tariffs
The Bank of Canada kept the overnight rate unchanged through May, and this remained the case with the June announcement as well. However, other economic factors are beginning to play a role. A new steel tariff was introduced on June 4, which could have downstream effects on construction costs and pricing trends.
Condos Still Lead in Market Share
Condos continue to represent a significant portion of the market—about 40% of all sales in Toronto. Despite this, the condo segment remains a buyer’s market, with approximately 6.8 months of inventory on hand.
On the other hand, semi-detached and detached homes in sought-after neighbourhoods are still seeing strong interest, with multiple offers occurring on well-priced and desirable properties. While not all are selling on offer night, many are, and often at competitive prices.
Shifting Inventory Levels
Inventory is a key metric to watch. For detached homes, inventory rose to 3.87 months in May, suggesting a slightly slower pace. Semi-detached homes also saw an increase, moving from 2.12 to 2.23 months. Townhouses, however, saw a significant decrease in available inventory—down to 2.5 months—putting more negotiating power in the hands of sellers.
This shift may influence pricing in the townhouse segment moving forward.
The Takeaway
While the headlines may suggest a sluggish market, the numbers for the City of Toronto tell a more nuanced story. Sales are up, prices have shown solid growth since January, and specific property types are still in high demand. Condos remain more favourable for buyers, but inventory changes across all segments suggest that the landscape is shifting.
For those considering a purchase or sale, understanding the specifics of your property type and neighbourhood is more important than ever.
