November brought another month of subdued activity across the Greater Toronto Area (GTA) housing market, extending the softer conditions that have characterized much of 2025. Sales, prices, and new listings all trended lower, reflecting the cautious mindset of buyers and the broader economic uncertainty permeating the market. While there were a few pockets of tightening, particularly in new inventory levels, the overall picture remained one of moderation and adjustment.
“There are many GTA households who want to take advantage of lower borrowing costs and more favourable selling prices. What they need most is confidence in their long-term employment outlook. Fortunately, we saw encouraging news on jobs and the broader economy in November. If this positive momentum continues, consumer confidence will strengthen, and more people will be in a position to consider purchasing a home in 2026,” said TRREB President Elechia Barry-Sproule.
The Toronto Residential Real Estate Board (TRREB) reported 5,010 home sales throughout the GTA in November, down nearly 16% from last year and marking a notable pullback from October’s brief rebound. This decline aligns with a trend that began early in the year, as prolonged economic headwinds, including a volatile U.S. tariff landscape, a cooling labour market, and persistent cost-of-living pressures, have kept many prospective buyers on the sidelines. Even with multiple Bank of Canada rate cuts bringing the overnight rate to 2.25%, mortgage rates have remained stubbornly high due to elevated bond yields. For many households, affordability remains a real barrier.
Prices followed a similar path. The GTA’s benchmark price fell to $951,700, down 0.5% month-over-month and 5.8% year-over-year. The average sale price declined to $1,039,458, a 1.4% monthly decrease and 6% drop annually. Toronto proper mirrored these trends: the city’s average price slipped to $1,036,362, a 3.1% monthly decline, while the benchmark price saw a modest 0.4% month-over-month uptick but remained lower than last year.
Across all property types, the market experienced widespread price declines. Detached homes saw a 7.3% annual decline across the GTA, semi-detached homes fell 7.4%, and freehold townhomes were down 8.2%. Condominiums, often viewed as the entry point for affordability, registered a 3.8% decline, but their market dynamics are driven by more than price alone. Much of today’s condo inventory was designed for investors rather than end-users, with many units under 700 square feet. As immigration flows moderate and rental rates soften, investors have increasingly offloaded these smaller units, contributing to a meaningful 20%+ drop in condo sales year-over-year.
“November reports on employment and economic growth were much stronger than expected. The Canadian economy may be weathering trade-related headwinds better than expected. More certainty on the trade front coupled with positive economic impacts of recently announced infrastructure projects could improve homebuyer confidence moving forward,” said TRREB Chief Information Officer Jason Mercer.
Activity levels also shifted as supply patterns evolved. New listings fell sharply in November, down 30.7% month-over-month, one of the steepest pullbacks of the year. Although seasonal trends typically bring fewer sellers to market late in the fall, this reduction was well beyond the norm. The decline in new supply temporarily firmed market conditions, lifting the sales-to-new-listings ratio in both the GTA and the City of Toronto. Yet despite this tightening, overall inventory remained elevated year-over-year, with 24,549 active listings across the region. The result is approximately 4.9 months of supply.
Market performance continued to diverge between the City of Toronto and the surrounding 905 region. Sales in Toronto declined 7.7% from last year, while the 905 saw a much steeper 16.8% drop, a reflection of pandemic-era migration patterns gradually reversing. Many buyers who moved to the suburbs during the height of COVID-19 have since gravitated back toward the city’s amenities, contributing to a deeper adjustment in outer markets. Average prices fell 4.8% year-over-year in Toronto and 8.75% in the 905.
With buyers remaining selective and well-qualified purchasers taking their time, homes lingered longer on the market in November. The average days on market rose to 56 days, up from 49 a year ago. Properties also sold further below asking, with the average sale-to-list ratio slipping to 97%, a notable shift from the tighter 99% recorded last year. Sellers who are achieving success in today’s climate are pairing realistic pricing with thoughtful presentation and, at times, incentives to motivate hesitant buyers.
Looking ahead, the path to recovery hinges largely on consumer confidence. While the late-fall slowdown is partly seasonal, the broader trends of 2025 point to a market recalibrating after years of volatility. Encouragingly, new inventory is being absorbed, and November marked the first time in months that fewer new homes came to market compared to last year, a potential early step toward more stable conditions in 2026. If economic fundamentals such as employment, borrowing costs, and global trade tensions show signs of stabilization, the groundwork is in place for gradual improvement to transition from correction into a more balanced, opportunity-rich phase in 2026, with well-prepared sellers and strategic buyers best positioned to benefit.
“Homebuyers are currently benefitting from a well-supplied resale market. However, as this inventory is absorbed, new construction is required to fill the housing pipeline. It will be key to see projects that bridge the gap between condominium apartments and traditional single-family homes. Home construction results in large economic benefits that would help in today’s economic climate,” said TRREB CEO John DiMichele.
TRREB expects approximately 62,500 homes to trade hands by year-end, down from more than 70,000 last year, underscoring the quieter environment but also highlighting latent demand waiting for clarity.
For now, the market remains in transition, balanced in supply, softer in pricing, and shaped by cautious optimism. As we move through the winter months, thoughtful strategy and skilled guidance remain essential for both buyers and sellers navigating this evolving landscape.