Toronto housing market tightens as GTA home sales climb again in May

Home sales across the Greater Toronto Area rose for a third consecutive month in May, while average property prices continued to fall compared with last year, according to the Toronto Regional Real Estate Board.

TRREB said 6,583 homes were sold across the region last month, marking a 6.3 percent increase from May 2025.

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Sales also climbed 10 percent from April on a seasonally adjusted basis.

Despite stronger activity, the average selling price fell 4.6 percent year over year to $1,069,700. The benchmark home price, which reflects a typical property, dropped 6.7 percent.

“Spring sales have been stronger than last year, reflecting improved affordability stemming from lower selling prices and borrowing costs,” TRREB president Daniel Steinfeld said in a statement.

The board said market conditions tightened in May as listings declined. New listings fell 18.9 percent from a year earlier, while active inventory dropped 13.3 percent.

Some real estate agents say bidding wars are beginning to return in certain neighbourhoods.

Detached homes led gains in sales activity, rising nine per cent compared with last year, while townhouse and condominium sales also increased across the GTA.