Toronto’s real estate market ended 2025 in a whimper. As the year came to a close, most buyers remained in wait and see mode. December 2025 delivered stronger sales compared to a year ago, while prices continued to ease, creating a more balanced and opportunity-driven market.
December 2025 Snapshot: Transactions up as Prices Soften
Home sales in December were up 16% year-over-year with detached homes leading the way up 34%, while condo apartments also saw an uptick of 15% in activity. That said, prices moved in the opposite direction. The average price across all home types declined 5% from last December, reinforcing that today’s buyers are motivated—but price conscious.
New listings rose 9% overall, giving buyers more choice and helping keep prices in check. Semi-detached homes saw a notable increase in listings, while detached supply also grew at a steady pace. Homes also took a little longer to sell. Days on market increased to 41 days, with condos experiencing the most slowdown.
2025 Summary: Economic Uncertainty Amidst Improved Affordability
As mortgage costs eased last year, there was hope of a housing rebound. The uncertain effect of tariffs and AI on employment and inflation cast a pall on the economy resulting in the lowest number of sales in two decades – down 31% from the 2021-2025 five-year average. Total sales were down 6%, driven largely by a 12% drop in condo sales. Semi-detached homes were the standout, with sales up 8% year-over-year. Average prices dipped 3% across the board.
More homes came to market in 2025, with new listings up 7%, particularly in the detached and semi-detached segments. This number is skewed, as about 25% of properties were not brand new listings but re-listed. With more supply and fewer urgency-driven buyers, homes took longer to sell in every category. Condos remained the most challenged segment, facing softer demand, longer selling times, and continued price pressure—especially for investor-oriented units.
For 2026, our central bank has signalled that they intend to keep rates stable as it keeps an eye on inflation. As the US attempts to impose its economic will on Canada (and the world), uncertainty will continue. With Toronto’s market prices 20% off of peak 2022, I’m optimistic that pent up demand and improved affordability will see an improved market this year.
Buyers will still have leverage. Sellers meanwhile will be more willing to negotiate as they have seen the sluggish markets of the past few years so they can move forward with upsizing/downsizing plans. For first time home buyers, freehold properties are seeing renewed interest, so don’t wait too long. Investors are still choosing to stay on the sidelines so condos will lag in this competitive landscape.
Shen Shoots The Breeze
Last year, my brother, Ray and I decided we wanted to organize a family vacation with everyone on the Young side — especially because each year it gets a little harder for our parents to travel and keep up. We chose the end of December since it was the only time that worked for all 10 of us and an all-inclusive seemed ideal for three generations.
At first, Ray and I planned to handle it ourselves. But coordinating flights from Toronto and Boston, finding a high-quality resort with at least four rooms close together, and making sure we had direct flights, good schedules, and enough backup options in case of bad weather quickly started to feel overwhelming – especially with December only a couple months away. We were both busy, and even finding time to compare notes was becoming its own project.
A friend suggested using a travel agent. I’ll admit, I was skeptical. In a world of Google, Expedia, and now AI, what could a travel agent really add? But out of curiosity, I called Tara who was based in Nova Scotia- a referral from good friends of ours.
Her fee was $500 to plan and book the entire trip. When I did the math, it made sense. We were easily looking at 10+ hours of research and coordination — and we had a long wish list: direct flights under five hours, flexibility of flights in case of weather, the ability for me to fly with Air Canada and Ray to use Delta, and ideally flights that arrived and departed around the same time.
In our first call, Tara gently pointed out that booking in late October for a peak-season trip two months away was already considered last-minute. Despite that, she came back the very next day with solid options that checked all our boxes. We landed on Jamaica.
Then, not long after we booked, Jamaica was hit by Hurricane Melissa – one of its worst hurricanes in years. We didn’t want to call Tara initially — it felt trivial compared to what people there were dealing with — but Tara stayed proactive. She contacted the resort directly, kept us updated, and made sure our specific property hadn’t been affected. Anytime we had questions, she had answers or options.
On December 30th, our family flew out — Ray and his brood from Boston, us from Toronto — arriving within 30 minutes of each other in Montego Bay. From there it was five days of swimming, eating, pickleball, mini-golf, spa time, and just being together. Lots of memory dividends.
We didn’t hire a travel advisor because we couldn’t book online. We hired one because we didn’t want to waste time, stress over details, or be on our own if something went sideways. And honestly? That peace of mind was worth every penny. If you would like Tara’s contact info, please reach out to us directly.