After five straight months of declines, Toronto home prices are showing signs of life again. As Canada-U.S. trade tensions cool and home valuations hit their lowest levels in four years, buyers are starting to step back into the market.
According to the latest data released by the Toronto Regional Real Estate Board, the benchmark price of a home in the city rose by 0.1% in May compared to April, bringing the average to $992,800.
Home sales in Toronto jumped 8.4% in May from the month prior, outpacing a 3.2% increase in new listings. It’s a sign that lower prices may be drawing more interest. In fact, the benchmark home price in April had reached its lowest point since April 2021, based on data from the Canadian Real Estate Association.
“Homeownership costs are more affordable this year compared to last,” said Jason Mercer, the Toronto real estate board’s chief information officer. “All else being equal, sales should be up relative to 2024.”
However, the market isn’t fully out of the woods just yet. Despite May’s month-over-month gains, sales were still down 13% compared to the same time last year.
“The issue is a lack of economic confidence,” Mercer added, suggesting that the housing market could see further recovery once trade tensions are fully resolved.
For now, while the uptick is modest, the data hints that Toronto's housing market may be finding its footing again, especially if economic uncertainty begins to fade.
Contact me if you are looking to buy or sell your home this summer for professional advice and guidance.