The spring housing market in Toronto has officially stalled.
The latest data for May paints a bleak picture. Condo sales are down 23% year-over-year, with prices falling 7%. Inventory has climbed to nearly 8 months’ worth of supply—a clear sign that listings are far outpacing buyer demand.
The market for houses isn’t much stronger. While sales are down a more modest 5% compared to last year, this marks the fourth consecutive month of 30-year lows in sales activity. To put it in perspective: more homes sold in May 1996 than in May 2025.
Even downtown neighbourhoods that were seeing strong demand and multiple offers just a couple of months ago have cooled noticeably. Offer nights are increasingly unsuccessful, and homes are sitting on the market longer than sellers expected.
This isn’t just a story about the housing market. It’s a reflection of broader economic unease. Rising global uncertainty and growing concerns about job security are pushing would-be buyers to the sidelines. People don’t tend to make major financial decisions—like buying a home—when they’re worried about their income or employment.
When that confidence will return is anyone’s guess. Until then, expect continued weakness in Toronto’s housing market.
John Pasalis is President of Realosophy Realty. A specialist in real estate data analysis, John’s research focuses on unlocking micro trends in the Greater Toronto Area real estate market. His research has been utilized by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC) and the International Monetary Fund (IMF).
Have questions about your own moves in the Toronto area as a buyer, seller, investor or renter? Book a no-obligation consult with John and his team at a Realosophy here: https://www.movesmartly.com/meetjohn
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