Greater Toronto home sales up six per cent in May as prices fall: real estate board

The real estate market in the GTA saw home sales go up six per cent in May, while the average home price is down 4.6 per cent compared to last year.

The Greater Toronto Area marked its third straight month of higher home sales compared with a year earlier, as the city’s real estate board says the market tightened in May.

A total of 6,583 homes in the region changed hands last month, up 6.3 per cent compared with May 2025, while sales also increased 10 per cent from April on a seasonally adjusted basis.

The Toronto Regional Real Estate Board said Wednesday the average selling price was down 4.6 per cent year-over-year to $1,069,700, and the composite benchmark price, meant to represent the typical home, was down 6.7 per cent.

“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 news release.

“Sales are forecast to improve further as we move through the second half of this year. Recovery would be further bolstered by positive news on the trade front along with an easing of geopolitical tensions and related uncertainty.”

TRREB chief information officer Jason Mercer added that selling prices could start to grow in the back half of the year if sales continue to strengthen relative to listings, but buyers have “substantial negotiating power” for now.

Some industry watchers are starting to notice more bidding wars pop up though.

Scott Ingram, a sales representative with Century 21 Regal Realty, said he’s seeing sellers list properties at an “artificially low price” in attempt to drive competition between prospective buyers.

“People use that strategy when the market’s hot, or when they’re feeling confident that they will attract multiple buyers,” he said.

“So the fact that we’re seeing more of that taking place now, I think it shows there’s a little bit more confidence from sellers.”

There were 17,698 new listings on the market in May, down 18.9 per cent from last year.

Inventory decreased 13.3 per cent as there were 26,927 total active listings in the GTA.

There were 2,377 sales last month in the City of Toronto, a 3.2 per cent increase from May 2025. Across the rest of the GTA, home sales were up 8.1 per cent to 4,206.

“As standing inventory has been absorbed, competition between buyers has likely increased in some neighbourhoods,” the board said.

“This should see the price trend flatten and ultimately trend upwards in the months ahead.”

Ingram said prices have stabilized when comparing month-to-month over the past half year.

With a more “steady” market, he said buyers are being drawn off the sidelines, although Statistics Canada’s latest GDP data indicating the economy has stalled could risk that sentiment turning sour.

“There’s still uncertainty right now, globally, but I think people have maybe just gotten used to this level of uncertainty,” he said.

Most housing types saw increased activity throughout the region last month, led by a nine per cent year-over increase in detached home sales.

Townhouse sales were up 4.8 per cent while condo activity rose 4.2 per cent. Sales of semi-detached homes ticked 0.8 per cent lower.

This report by The Canadian Press was first published June 3, 2026.