Buyers are flocking to the sidelines – and every type of property is taking a hit
Greater Toronto Area (GTA) home sales tumbled in April, plunging by 23.3% compared with the same time last year – and a flood of new listings saw prices dip as economic uncertainty and tariff fears continue to grip homebuyers.
New data released by Toronto’s regional real estate board (TRREB) on Tuesday showed 5,601 homes were sold through its MLS System last month, a huge drop from April 2024, as new listings jumped by 8.1% year-over-year to 18,836.
The MLS’s Home Price Index (HPI) benchmark slipped by 5.4% compared with 12 months before, while the average selling price was down 4.1%, landing just above $1.107 million.
Detached home sales were 21.7% lower across the GTA year-over-year, with semi-detached sales down 10%. The number of townhouses sold dropped by a full 22.9%, while the condo crisis gripping the city continues to worsen.
In the city centre 416 region, condo sales dived by 29.9% compared with the same time last year, and fell by 31.5% in the 905 region surrounding Toronto.
New listings increased year-over-year and home sales saw a slight increase compared to March. For more housing market insights read TRREB’s Market Watch report. Learn more: https://t.co/Z8vEVfoIKR 📈 pic.twitter.com/nuE75FmEAs
— Toronto Regional Real Estate Board (@TheReal_TRREB) May 6, 2025
Trump’s trade war continues to roil the Toronto housing market
Unsurprisingly, the ongoing trade spat between Canada and the United States is the single biggest factor keeping Toronto buyers on the sidelines, according to TRREB president Elechia Barry-Sproule.
That tension, which began when the US announced huge tariffs on Canadian imports earlier this year, has sent financial markets into a tailspin and raised fears of a coming recession, although Barry-Sproule sounded a positive note on a potential détente between the two nations.
“Following the recent federal election, many households across the GTA are closely monitoring the evolution of our trade relationship with the United States,” she said in remarks accompanying the release.
“If this relationship moves in a positive direction, we could see an uptick in transactions driven by improved consumer confidence and a market that is both more affordable and better supplied.”
The trade war has cast a deep chill over Canada’s housing market even despite a series of interest rate cuts by the Bank of Canada since the middle of last year as hopeful buyers anxiously wait to see what impact Trump’s tariff war will have on the national economy.
But TRREB chief executive officer John DiMichele said he doesn’t expect demand to remain on ice for long – and highlighted a continuing longer-term supply crisis despite the jump in new inventory last month.
“Demand is expected to rebound as the population grows through immigration. But with new construction activity slowing over the past year, the supply pipeline is at risk of drying up,” he said.
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