Market Report May 2025
- Mark
- 7 minutes ago
- 4 min read
REXIG SUMMARY
Housing Market May 2025: Affordability Improves, but Uncertainty Holds Buyers Back
Homeownership became more accessible across the Greater Toronto Area (GTA) in May 2025, as both borrowing costs and average selling prices continued to ease year-over-year. While this created favourable conditions for buyers, overall market momentum remained mixed.
Buyer activity was held back by broader economic uncertainty. Trade instability, concerns around employment, and the upcoming federal election have prompted many households to delay purchasing decisions. Confidence—not affordability—is now the primary barrier to increased sales.
That said, the spring market showed signs of subtle recovery, with sales and prices both trending upward on a month-over-month basis.
Key Highlights – May 2025
Home Sales:
6,244 homes were sold across the GTA in May, down 13.3% compared to the same month last year. However, on a seasonally adjusted basis, sales rose month-over-month for the second consecutive time.
New Listings:
21,819 new listings entered the market in May — a 14% year-over-year increase. This surge in inventory has created more options for buyers and contributed to a more balanced market.
Pricing Trends:
The average selling price reached $1,120,879, reflecting a 4% year-over-year decrease.
The MLS® HPI benchmark was also down 4.5%.
However, both measured edged upward compared to April 2025, signalling the potential for renewed buyers interest.
Market Insights
Affordability has improved across the GTA thanks to softer prices and lower borrowing costs — a notable shift from the fast-paced spring markets of recent years.
Still, buyer confidence remains cautious. Uncertainty around trade, politics, and job stability is holding many back from committing, despite more favourable conditions.
On the other hand, sellers face more competition. With listings up, homes that aren’t priced or positioned correctly risk sitting on the market.
The result? A more balanced playing field — and a window of opportunity for buyers and sellers who move with the right strategy.
Focus on Affordability, Confidence, and Policy
Affordability: Improving conditions are opening doors for buyers who have been priced out in recent years.
Confidence: Economic sentiment is still the key variable — not just interest rates.
Policy: Calls are growing for federal action on housing affordability, taxes, and development efficiency.
Future Outlook
Expect a cautious summer market. If rate cuts materialize and economic sentiment improves, activity could accelerate. For now, buyers have leverage — but only those prepared to act strategically will benefit. Sellers will need to adapt quickly to stay competitive in this shifting landscape.
REGIONAL SPOTLIGHT // MAY 2025 Mississauga Region Real Estate Market Report
Mississauga’s housing market continued to soften in May 2025, as sales activity fell to its lowest May level since 2020. Buyer sentiment remained subdued under the weight of economic uncertainty, tariff impacts, and broader market caution.
While affordability is gradually improving, it hasn’t yet been enough to offset the hesitation many buyers are feeling. Meanwhile, sellers face rising competition as inventory climbs at the fastest pace in over a decade.
Market Performance Overview
Home Sales:A total of 508 homes were sold in May — down 20% year-over-year, and well below both 5- and 10-year averages for the month. Year-to-date, sales were also down 20.4% from 2024.
Pricing Trends
The MLS® Home Price Index benchmark for all property types was $1,037,200, down 5.9% YoY.
Single-family homes: $1,312,200 (▼ 7.6%)
Townhomes: $805,100 (▼ 3.0%)
Condos: $617,200 (▼ 5.8%)
The average sale price in May was $1,040,979, down 5.0% YoY, with the year-to-date average coming in at $1,018,051 (▼ 4.9%).
New & Active Listings
Inventory surged as 1,994 new listings hit the market — up 19.3% YoY, the highest May total in over five years.Active listings rose sharply to 2,800 units, up 51.5% YoY, marking the highest May inventory levels since before 2010.
Months of Inventory
Now at 5.5 months, up from 2.9 a year ago — officially tipping the scale into buyer’s market territory.
Market Insights
Buyers in Mississauga now have significantly more choice — and more leverage — than at any point in recent years. However, despite falling prices and more inventory, buyer activity continues to underperform due to persistent economic anxiety and a lack of urgency.
Sellers, on the other hand, are contending with growing competition. In a market flooded with options, homes that aren't priced or marketed effectively are likely to sit.
This is a market that demands strategy, not guesswork.
Future Outlook
Mississauga's housing market is entering a phase of correction and realignment. If interest rates drop further and economic confidence stabilizes, activity may return — but for now, the dynamics favour well-prepared buyers and data-driven sellers.
The current landscape presents rare opportunities for buyers who are ready to act decisively — and for sellers who understand that price, timing, and presentation are everything in today’s market.
As valued clients of REXIG Realty, we are excited to provide you with our latest Real Estate Market Report
for the Greater Toronto Area & surrounding regions.
Our goal is to keep you informed and empowered with the most up-to-date information to make
informed decisions regarding your real estate investments.
