Real Estate Market Report | Toronto | May 2025
Inventory Floods In, Buyers Step Back
With the looming threat of US tariffs on the horizon, homebuyers are looking to see what the final implications may be – the good news is that selling with Bōde mitigates that risk entirely by maximizing your equity, you’ll outperform traditional methods of buying and selling.
We help provide home buyers and sellers with the data they need to be successful. When you have access to accurate and relevant data, you can be more confident in setting the price of your home and selling it or buying at the right price.
With many important factors to consider (what kind of home you have, what community etc.), it’s important to look specifically at what the housing market is doing in your neighbourhood.
Bōdesellers are more successful and actually make more money, on average, than the rest of the market. We are also here to make sure you have the information you need to make the decisions that are right for YOU!
So what's happening in the Toronto real estate market as of May 2025?
Let’s start with a Macroeconomics view
To understand what’s happening in the real estate market you have to look at supply and demand.
The best proxies for supply and demand are:
Supply
New supply: New Listings (i.e. the number of homes recently listed for sale)
Total supply: Inventory (i.e. the total number of homes listed for sale)
Demand
Sales (i.e. the number of homes recently sold)
Supply & Demand
Months of Supply (i.e. the number of months it would take to sell all current inventory at the current rate of sale)
These metrics are the best indicators of the health of the real estate market. Let’s look at what they show us.
Overall Toronto Market
Toronto’s housing market is under pressure. While new listings rose 12% above the five-year April average, sales plummeted by 30%, leading to a substantial 66% increase in inventory and a 106% jump in months of supply. Buyers have more options — but they’re not biting. Despite this, the overall benchmark price climbed 3.07% month-over-month to $985,400, a likely result of higher-end properties skewing averages. However, prices are still down 0.63% year-over-year, reflecting a market in flux. Confidence is clearly cooling as the balance shifts toward buyers — but the full price correction may not be done yet.
Toronto's Detached Homes
Toronto’s detached home segment is softening noticeably. New listings are up 12%, but sales are down 18%, causing inventory to swell by 61% and months of supply to rise by 83%. This mismatch is beginning to take a toll — the benchmark price fell 1.32% month-over-month and is down a significant 6.67% year-over-year, now at $1,559,500. Buyers are in wait-and-see mode, and even modest price dips aren’t enough to spark action. Expect sellers to feel more pressure in the months ahead.
Toronto's Condominiums
Condos are facing an even steeper downturn. Sales are down a steep 38% over the five-year average, while listings are up 11%, leading to a 67% rise in inventory and a 124% spike in months of supply. That oversupply is putting a lid on pricing — the benchmark slipped 0.80% from March and is down 7.33% year-over-year, sitting at $606,500. Investor sentiment is clearly shaky, and affordability concerns, combined with stagnant rent growth, may be holding back interest in the segment that once defined downtown living.
Toronto's Semi-detached homes
The semi-detached segment is under the most acute pricing pressure. Listings are up 13%, sales are down 17%, and months of supply have surged 76%. Unlike condos or detached homes, semis saw the steepest month-over-month price drop at 5.32%, and prices are now down 7.23% annually, with a benchmark of $1,248,500. The rapid shift in pricing suggests this segment is especially vulnerable to changing buyer sentiment, and sellers here may need to adjust expectations quickly.
It’s critical to understand the dynamics in your local property market
To understand your local property market you need to look at your local data. Head over to Bōde’s new and improved Market Data dashboard, the only place where you can see all the data yourself, including being able to filter on community, property type, and price range to see exactly what’s happening where you live.
You can also see the sold price of any home that has sold in the last 2 years using Bode’s Sold Data page.
If you’re thinking about selling, take a look at how Bōde helps sellers sell for 1.3% higher prices while paying 50% less commission.
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