The Toronto housing market ended 2025 in a more affordable position, as higher inventory and cautious buyer confidence placed downward pressure on prices. With both selling prices and mortgage rates trending lower, conditions are beginning to support a market recovery as we head into 2026.
2025 at a glance (Toronto MLS®):
Home sales: 62,433 (↓ 11.2% year-over-year)
New listings: 186,753 (↑ 10.1%)
Average selling price: $1,067,968 (↓ 4.7%)
December 2025:
Average price: $1,006,735 (↓ 5.1% year-over-year)
As confidence in the economy and job market improves, pent-up demand is expected to return and drive sales activity higher.
If you have questions about the market or are planning your real estate goals for 2026, feel free to call or email me—I’d be happy to help.
Alex Prasoulis
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