October 2025 Market Update: Lower Rates & Rising Opportunity
September Market Highlights
Lower borrowing costs encouraged more buyers back into the market, even as prices edged slightly lower. Sellers continue to see steady activity but need to stay competitive on pricing.
Analysis: This continued activity suggests that while buyers remain sensitive to financing costs, the appetite for real estate is strong. For sellers, this means that while bidding wars are rare, correctly priced and well-staged homes are still moving quickly. Focus on presentation to capture the attention of today's discerning buyer.
More Choice, Moderate Growth
New listings: 19,260 — up 4.0% year-over-year. Buyers benefited from increased inventory while sellers faced stiffer competition.
Analysis: The healthy rise in new listings is a key factor shifting power toward the buyer. More options mean less urgency, giving buyers time to conduct thorough due diligence. This is a welcome change after years of severely restricted inventory and is creating a more balanced transaction environment.
Rates & Affordability
The Bank of Canada’s rate cut in September helped ease monthly mortgage payments. However, prices still remain elevated relative to average incomes.
Analysis: The 25 bps cut was a psychological boost for many, easing the qualification stress test slightly. While it does not solve the long-term affordability crisis, it provides immediate relief and has clearly encouraged some hesitant buyers back into the market. We are watching closely for the next rate announcement.
Market Tilt
With listings still outpacing sales, buyers have leverage in negotiations. Expect more balanced conditions if further rate cuts materialize this fall.
Economic Outlook
TRREB anticipates that additional 25 bps rate cuts could further align mortgage payments with incomes and strengthen housing demand. Long-term, major infrastructure investments continue to underpin growth across the GTA.
Source: Market Watch – September 2025
Real Estate Tip of the Month
3 Ways to Make the Most of September’s Market Shift:
Act fast on lower rates: Pre-approvals may stretch further with recent Bank of Canada cuts.
Negotiate confidently: High supply means more room for price discussions and conditions.
Target motivated sellers: Properties with longer days on market often present value opportunities.
Need a tailored strategy? Our full-service team is here to guide you.
