Home sales across the Greater Toronto Area (GTA) fell 2.4% in June compared to a year ago, with 6,243 properties changing hands, according to new data from the Toronto Regional Real Estate Board (TRREB).
At the same time, market conditions continued to show signs of recovery, supported by lower borrowing costs and a growing inventory of homes.
While year-over-year sales dipped slightly, transactions rose 8.1% from May on a seasonally adjusted basis, suggesting renewed activity heading into summer.
New listings surged, with 19,839 homes hitting the market in June, up 7.7% from a year earlier. Active listings reached 31,603, up 30.8% from June 2024.
The average selling price for a home in the GTA was $1,101,691, down 5.4% year-over-year.
Meanwhile, the MLS Home Price Index composite benchmark, which is designed to represent a typical home, fell 5.5%.
“With more listings available, buyers are taking advantage of increased choice and negotiating discounts off asking prices,” TRREB President Elechia Barry-Sproule said in a statement.
“Combined with lower borrowing costs compared to a year ago, homeownership is becoming a more attainable goal for many households in 2025.”
While the easing in prices and borrowing costs is helping affordability, the TRREB believes that broader economic and geopolitical factors remain key to a sustained recovery.
“A firm trade deal with the United States, accompanied by an end to cross-border sabre rattling, would go a long way to alleviating a weakened economy and improving consumer confidence,” TRREB chief market analyst Jason Mercer said.
He added that two additional interest rate cuts would make mortgage payments more manageable and could further lift buyer sentiment and selling prices.