Home sales in Toronto are down for the third month in a row due to economic uncertainty

Home sales in the Greater Toronto Area fell for a third straight month in December and prices fell as economic uncertainty kept homebuyers on the sidelines, data from the Toronto Regional Real Estate Board showed Wednesday.Seasonally adjusted sales last month fell 0.4% from November to 5,624 units, following declines in October and November. It marked the lowest level of sales since June.

The board’s home price index fell 0.7% month-on-month, seasonally adjusted, to C$962,300 ($697,066).

For 2025, sales decreased 11.2% compared to 2024, new listings increased 10.1% and average sales price decreased 4.7%.

The Greater Toronto Area includes Toronto, Canada’s most populous city, and four surrounding regional municipalities.

“The GTA housing market became more affordable in 2025 as sales prices and mortgage rates lowered,” board chairman Daniel Steinfeld said in a statement.

‘Improved affordability has prepared the market for recovery. Once households are convinced that the economy – and the labor market – are on solid footing, sales will increase as pent-up demand is met.” The Bank ⁠ of Canada ⁠ has cut its benchmark interest rate to a three-year low of 2.25% to support the economy, which has been hit hard by the US-led trade war.

On a year-over-year basis, the price index fell 6.3% in December, while sales fell 8.9% and new listings rose 1.8%.