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May marked the largest number of transactions since November of last year.Carlos Osorio/Reuters
Lower home prices helped revive the Toronto real estate market in May with sales climbing for the third straight month.
There were 5,364 sales in the Toronto region last month, according to the Toronto Regional Real Estate Board (TRREB).
Those sales numbers were 10 per cent higher than April’s on a seasonally adjusted basis and 14 per cent higher than May, 2025. The month marked the largest number of transactions since November of last year.
Meanwhile, fewer homeowners put their properties up for sale. New listings fell 2.1 per cent from April to May and were down 16 per cent year-over-year. The real estate board said this has likely increased competition for properties in some parts of the Toronto area.
In the GTA, prices continue to slide in a ‘skittish market’
That competition, however, did not lead to higher prices. TREBB’s home price index, which removes the most expensive transactions, fell 0.2 per cent to $927,800 month-over-month.
The biggest declines occurred in the areas surrounding the City of Toronto.
In York, to the north of the city, the home price index fell 9.5 per cent year-over-year. In Peel, to the west of the city, the index decreased 7.6 per cent over the same period.
In comparison, the City of Toronto’s home price index was 5.4 per cent lower than a year ago.
In terms of property type, condos lost more value than houses and townhomes. Although resale condos are cheaper than newly built units, there is now an abundance of the high-rise product flooding the market.
In Peel, York and Durham, the typical condo price fell more than 10 per cent in the 12 months to May.
For the past four years, home prices have been on the decline owing in part to relatively higher mortgage rates and growing investor distaste for residential real estate.
The typical home price in the Toronto region is now 32.6 per cent below the height of the pandemic real estate boom in the spring of 2022.
“Inventory levels trended lower over the past year, but buyers continued to have substantial negotiating power through the spring,” TRREB chief information officer Jason Mercer said in a news release.
He said home prices could start to increase later this year if sales increase relative to new listings.
