Toronto Real Estate Market Sees Price Drop Below $1M Sales Hit 90s Crash Levels
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The Greater Toronto Area (GTA) real estate market is experiencing a significant downturn, with typical home prices falling below the $1 million mark for the first time in years. In April 2025, the composite benchmark price for a home in the City of Toronto dropped to $985,400, a 4.5% decrease from the previous year. This decline is attributed to a combination of factors, including a rise in inventory levels and a sharp decrease in sales activity. The Toronto Regional Real Estate Board (TRREB) reported that home sales in April were down 23.3% year-over-year, reaching levels not seen since the 1990s real estate crash.
The surge in inventory is notable, with active listings increasing by 54% compared to the previous year, totaling 27,400 homes for sale. This marks the highest inventory level for the month of April in over 15 years. The imbalance between the number of homes for sale and the declining number of buyers has created a buyer's market, characterized by a sales-to-new-listings ratio of just 29.7%. This dynamic is exerting downward pressure on home prices, as sellers compete to attract a shrinking pool of buyers.
Several factors are contributing to the current market conditions. Trade tensions between Canada and the United States have introduced economic uncertainty, affecting consumer confidence. Additionally, the GTA is experiencing demographic shifts, with an increasing number of young workers relocating to Alberta in search of better employment opportunities. These developments are impacting demand in the Toronto housing market, leading to a challenging environment for sellers and potential buyers alike.
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