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I have listed a new property at 308 109 Ossington Avenue in Toronto. See details here
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Home sales rose 2.3% year-over-year with 5,211 transactions, while new listings climbed 9.4% to 14,038, giving buyers more options. The average selling price was $1,022,143, down 5.2% from last year. Month-over-month, sales dipped slightly and prices held steady, reflecting a well-supplied but cautious market.
Here’s the Quick Market Overview Charts for a closer look at how sales, listings, and prices are trending:
With more inventory and softer prices, buyers have greater negotiating power, but further interest rate cuts could quickly shift the market.
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The Toronto Regional Real Estate Board (TRREB) has released its August 2025 housing market report, and the numbers reveal a story of shifting dynamics that both buyers and sellers in the Greater Toronto Area (GTA) should pay attention to.
Compared to last year, August showed modest growth in home sales, while inventory levels climbed even higher. This balance means buyers currently have more choice than ever, while sellers are seeing prices settle under negotiation pressure
5,211 home sales were reported through TRREB’s MLS® System in August 2025. That’s up 2.3% compared to August 2024. However, on a seasonally adjusted basis, sales actually edged lower compared to July 2025.
What this tells us is that demand is steady, but many buyers remain cautious, watching how interest rates and economic conditions will play out in the coming months.
If you’re house hunting right now, you’re in luck.
14,038 new listings hit the market in August 2025.
That’s a 9.4% jump year-over-year.
More listings mean buyers can take their time to explore different options and negotiate better deals, while sellers face increased competition.
This august, affordability remains the biggest challenge.
The MLS® Home Price Index Composite benchmark was down 5.2% year-over-year in August.
The average selling price also landed at $1,022,143, down 5.2% from August 2024.
On a month-over-month, seasonally adjusted basis, prices stayed flat compared to July 2025.
Prices aren’t free-falling, but they’re softening enough to create opportunities for buyers ready to act.
For Buyers:
Now is a great time to shop around. With more listings on the market and prices negotiating downward, buyers have more leverage than they’ve had in recent years. If interest rates drop further, expect more competition to return quickly.
For Sellers:
Be prepared for longer days on market and more negotiations. Pricing strategically is key—homes that are well-presented and competitively priced are still moving, especially in desirable neighbourhoods.
The August 2025 GTA real estate market reflects a transitional period. Sales are steady, inventory is high, and prices are soft but stable.
If you’re planning to buy or sell, staying informed about the latest market data helps you make the right moves with confidence. Have a question? Let’s connect!
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I have listed a new property at 402 15 Sousa Mendes Street in Toronto. See details here
Urban living at its finest in this rare 1-bedroom corner townhome at Wallace Walk, located in the vibrant Junction Triangle neighborhood. Featuring a spacious 580 sq ft layout with floor-to-ceiling windows and soaring ceilings, this bright and modern unit is a fantastic condo alternative-low maintenance fees and no elevators. Enjoy a stylish open-concept design, a large walk-in closet, and recent upgrades including new flooring (2024) and a built-in microwave (2025). Designer fixtures and finishes throughout. Parking included! Walk to everything local shops, cafes, restaurants, Roncesvalles, High Park, and The Junction. Unmatched transit access just steps to the Bloor GO/UP Express and TTC subway and buses
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I have listed a new property at 405 125 Redpath Avenue in Toronto. See details here
This one-bedroom and den (can be used as 2nd bed), two-washroom unit is freshly updated and ready to move in. Welcome to The Eglinton built in 2019 by award-winning Menkes. This is a well-managed, luxurious building with friendly staff in a prime location. Steps to shopping, groceries, restaurants, cinema, pubs, North Toronto C.I., Eglinton TTC station, and the new Mt Pleasant Crosstown LRT. The unit boasts one of the best layouts in the building, which maximizes space. The den has a regular door and fits a queen or double bed. Amenities include a 24-hour concierge, gym, billiards lounge, party room, guest suites, media room, kids' playroom, and outdoor terrace. Upgraded premium vinyl flooring (installed in 2025), freshly painted (2025). Heat and water included, tenant pays hydro.
If you’ve ever wondered why your mortgage payments change, or why savings account rates sometimes feel like a rollercoaster rid chances are, it all ties back to one powerful lever in Canada’s economy: the Bank of Canada’s overnight lending rate.
Let’s start simple.
The overnight lending rate is the interest rate at which big Canadian banks lend money to each other for a single day literally “overnight.” They do this to keep their daily balances in check and meet government requirements.
But here’s the catch: this short-term rate isn’t just a back-office banker thing. It’s the starting point for many interest rates you encounter every day—like:
Your variable mortgage rate
Interest on lines of credit
Business loans
Even the rate you earn on savings accounts or GICs
When the Bank of Canada adjusts this rate, it sets off a chain reaction across the entire financial system.
The short answer? To keep the economy stable and inflation under control.
The Bank of Canada aims to keep inflation around 2%. If prices are rising too fast (think: groceries getting more expensive every week), they’ll increase the rate to cool things down. If the economy is too slow, they’ll lower the rate to encourage spending and investment.
Here’s how that plays out:
The Bank of Canada doesn’t force the market to follow its lead. Instead, it sets a target rate and works within a range (called the operating band). Let’s say the target is 2.75% then the actual rate banks charge each other usually stays between 2.5% and 3.0%.
To keep things on track, the Bank uses something called open market operations, buying and selling government bonds to manage how much money is floating around.
This may sound technical, but think of it like adjusting the thermostat in your home. Too hot? Turn it down. Too cold? Turn it up. The Bank does the same, just with interest rates and money flow.
Let’s rewind to early 2020. The COVID-19 pandemic threw a wrench into the global economy. Businesses shut down. Jobs were lost. Uncertainty was everywhere.
In response, the Bank of Canada slashed the overnight rate from 1.75% to 0.25% the lowest it could go. Why? To make borrowing easier and cheaper, so people and businesses could stay afloat.
What happened next:
Mortgage rates dropped to record lows. Home buying surged.
Lines of credit became cheaper, helping families manage tight budgets.
Businesses borrowed at lower costs to keep operations running.
It worked! But it also sparked high demand, rising prices, and eventually... inflation.
Even if you’ve never heard of the overnight rate before, its effects probably show up in your wallet. Here’s how:
If you have a variable mortgage, line of credit, or floating-rate loan, your payments likely rise and fall with the overnight rate. Higher rate = higher payments. Lower rate = more room in your budget.
GICs and savings accounts offer better returns when rates are high. When rates drop, savers often look to riskier investments for better yields.
Interest rates influence how affordable mortgages are. Lower rates can fuel demand and push home prices up. Higher rates cool the market and reduce borrowing power.
Right now, the overnight rate sits at 2.75%, after several cuts throughout 2024.
This has brought some relief to homeowners and borrowers. But the economic road ahead is far from smooth.
While inflation has come down, 2025 has brought new challenges—especially around international trade.
New U.S. tariffs on Canadian steel, aluminum, and energy have triggered countermeasures from Canada. This back-and-forth is raising costs for Canadian businesses and creating uncertainty.
For the Bank of Canada, this means walking a tightrope:
Keep inflation under control ✅
Support economic growth ✅
Avoid spooking markets during trade conflicts ✅
In short? The overnight rate may stay put for a while, but it’s anyone’s guess what comes next.
You don’t need to track every policy announcement or read through every economic report. But keeping an eye on the Bank of Canada’s overnight rate is a smart move especially if you’re:
A homebuyer or current homeowner
A business owner managing loans or credit
A saver or investor planning your financial future
Understanding this one rate can help you make more informed decisions, plan better, and stay ahead of market shifts.
Because in today’s world, what you don’t know about interest rates can cost you.
📬 Want to stay updated on how rates could affect your mortgage, your savings, or your investment strategy? Subscribe to my newsletter or reach out anytime.
