Latest data shows a slight uptick in home sales for the month of May, however, this is more of a pause than a pivot. Data from OREA and CREA shows a month-over-month increase in home sales, with 17,242 residential properties changing hands in May 2025 (a 21% increase from April 2025).
However, the data also showed that the sales were down 6.7% compared to May of last year. Further, it was noted that the average home price in Ontario was $861,719 which is a marginal increase from April, but still down 3.2% year-over-year. Additionally, the sales-to-new-listings ratio (SNLR) was 34%, indicating a buyer’s market and suggesting that the uptick is not a full market turnaround but rather a pause or stabilization after previous declines.
Additionally, I am seeing that prices still remain largely flat and buyer enthusiasm is still muted. I am also seeing many prospective homebuyers remain cautious, with some holding back due to the broader economic volatility we are seeing. Detached homes and semi-detached properties have seen stronger demand in certain price segments, particularly in the $1.1 to $1.5 million range. This demand is likely supported by recently introduced federal mortgage rule changes that reduced down payment thresholds, giving buyers more flexibility in this band.
At the same time, inventory levels remain high, especially in the condo market. I have seen many units sell below asking price, and competition is far less intense than during the boom years. Still, one of the biggest headwinds facing the market continues to be affordability. Even with rate cuts, many Canadians are still priced out of the market, especially first-time buyers and those without significant equity from previous sales. Mortgage payment also remain elevated, and those renewing at today’s rates are facing substantial increases in their monthly costs.
As always, these dynamics can shift quickly. Those looking to enter or exit the market should monitor developments closely, including future rate announcements, employment trends, and policy updates that could reshape market conditions.
In my daily real estate practice, I have encountered a growing number of individuals who bought homes during the 2022 peak finding themselves underwater on their mortgages, with them often not being able to refinance, nor sell without facing significant financial losses. This also comes as developers are scaling back and buyers are hesitating, with signs being of a prolonged correction, rather than a short-term slump. As these reports and data shows, the real estate marketplace is always continuously evolving. Thus, the decision to buy or sell real estate should always take into careful consideration all such factors. Therefore, it is crucial to carefully evaluate your financial situation, long-term goals and local market conditions before making a decision. As a real estate professional with over 20+ years of experience in the industry, I have first-hand witnessed the housing affordability crisis and worked with both buyers and sellers in this market in my everyday practice. If you need expert guidance for your buying and selling needs, please don’t hesitate to reach out to me.
SP Singh Ahluwalia 