The December 2025 GTA housing statistics are in, and the data confirms what many buyers and sellers have been feeling on the ground: this is a market defined by higher inventory, slower absorption, and continued price adjustment.
According to the latest release from the Toronto Regional Real Estate Board (TRREB), both month-over-month and year-over-year figures point to a market that is still recalibrating after several years of volatility.
Let’s break down what the numbers are actually telling us.
December 2025: Year-Over-Year Snapshot
Compared to December 2024, the GTA market showed the following changes:
- Home Sales: 3,697 (⬇️ 8.9%)
- New Listings: 5,299 (⬆️ 1.8%)
- Active Listings: 17,005 (⬆️ 17.5%)
- Average Selling Price: $1,006,735 (⬇️ 5.1%)
- Average Days on Market (LDOM): 41 days (⬆️ 13.9%)
- Average Property Days on Market (PDOM): 65 days (⬆️ 18.2%)
The key takeaway here is balance or more accurately, a shift away from seller control. Inventory continues to build faster than sales, and homes are taking longer to sell. This combination puts consistent downward pressure on pricing and gives buyers more leverage than they’ve had in years.
Full-Year Context: How 2025 Compared to 2024
Looking beyond December, the full calendar year provides important perspective:
- Total Home Sales (2025): 62,433 (⬇️ 11.2% year-over-year)
- Total New Listings: 186,753 (⬆️ 10.1% year-over-year)
- Annual Average Selling Price: $1,067,968 (⬇️ 4.7% vs. 2024)
In addition, the MLS® Home Price Index (HPI) Composite Benchmark was down 6.3% year-over-year in December 2025.
This confirms that the price softness we’ve seen isn’t limited to one segment or one quarter it’s broad-based and has persisted throughout the year.
What the Data Says About Buyer Behaviour
Improved affordability has been a recurring theme in recent market commentary, driven by both lower prices and easing mortgage rates. However, affordability alone has not been enough to meaningfully increase sales volume.
Why?
The data suggests that confidence particularly around employment stability and long-term economic outlook — remains the missing ingredient. Buyers are more selective, more patient, and less willing to stretch. The increase in average days on market reflects that caution clearly.
For buyers, this environment continues to reward:
- Patience
- Strong negotiation
- A focus on value rather than urgency
Multiple-offer scenarios still exist, but they are now the exception, not the rule, and are almost always tied to correct pricing and desirable product.
What This Means for Sellers
For sellers, the numbers reinforce a message that’s been consistent throughout 2025: strategy matters more than ever.
With active listings up over 17% year-over-year and homes taking longer to sell, the margin for error has narrowed. Properties that are overpriced relative to current market conditions are sitting longer, often requiring price adjustments to regain momentum.
Today’s market rewards sellers who:
- Price realistically from day one
- Understand their local micro-market
- Prepare the property properly before listing
The days of “testing the market” come with real cost in both time and final sale price.
Looking Ahead
TRREB leadership has pointed to economic stability, employment confidence, and broader policy decisions as key factors that will influence the next phase of the market. Until those fundamentals improve, it’s reasonable to expect continued balance and cautious participation.
That said, markets don’t move in headlines — they move in data. And right now, the data supports informed decision-making, realistic expectations, and tailored strategies rather than one-size-fits-all advice.
____________
The December 2025 numbers don’t signal a dramatic shift but they do confirm the direction we’ve been moving in. More supply, slower sales, and pricing that continues to adjust to economic reality.
Whether you’re buying, selling, or simply watching the market, understanding these numbers not just the headlines is what leads to better outcomes.
If you want to discuss how these trends apply to your specific neighbourhood, property type, or price range, that’s where real insight starts.
Until next time,
David
