If you’re making real estate decisions in 2026, this month brought two important updates:

1. The Bank of Canada held its overnight rate at 2.25%, and

2. The U.S. Federal Reserve cut its key interest rate again.

Both moves impact confidence, borrowing costs, and buyer behaviour — but in different ways.

Here’s a clear breakdown to help you understand what’s actually happening, without the noise.

Bank of Canada Holds at 2.25% — Why That Matters

The Bank of Canada kept its policy rate unchanged, signaling that it sees the current level as appropriate to keep inflation close to 2% while helping the economy adjust to post‑pandemic structural changes.

Key Takeaways for Canadian Homeowners + Buyers

• Inflation remains near target: CPI is sitting close to 2.2%, and core inflation is still around 2.5%.

• Economic growth is uneven: Q3 surprised to the upside (2.6% growth), but much of it was driven by trade volatility, not domestic demand.

• Labour market improving slowly: Jobs are recovering but hiring intentions are still soft.

• Expect stability over the next few months: Unless major data shifts, the BoC is signaling that rates are likely to remain stable.

This hold suggests we’re entering a period where Canadians can plan with a little more confidence — something we haven’t had in a while.

The U.S. Federal Reserve Cuts Rates — And Why Canada Should Still Pay Attention

The Federal Reserve reduced its key rate again, bringing it to roughly 3.6% — the lowest in nearly three years.

Markets largely expected the move, which is why the reaction was modest: the S&P hovered near record highs, and the Dow climbed.

Why this matters for Canadians

• Fed cuts can ease global financial conditions.

• U.S. economic shifts often spill over into Canada through trade, capital flows, and investor sentiment.

• A more accommodative U.S. stance can indirectly influence future decisions by the Bank of Canada — but not immediately.

But there’s a caveat:

The Fed is deeply divided internally. Some members want more cuts to support hiring, while others worry inflation is still too high. Their uncertainty could extend into early 2026.

What This Means for Toronto Buyers and Sellers in 2026

1. Mortgage Stability Is Returning

With the Bank of Canada pausing and inflation softening, buyers can expect more predictable borrowing conditions — something we haven’t enjoyed for years.

2. Detached and Luxury Homes Will See Renewed Interest

Educated professionals, families, and investors often make decisions based on confidence.

Rate stability tends to bring these buyers back earlier than most segments.

3. Sellers Should Plan Ahead — Smartly

If you’re preparing your home for a 2026 sale, focus on value‑driven updates, not trends.

Financially minded buyers (especially those in finance and tech) look for longevity, not design fads.

4. Expect a More Balanced Spring Market

With both central banks signaling “steady as she goes,” 2026 could see healthier activity — still competitive in key pockets, but with less volatility.

My Perspective as a Toronto Real Estate Advisor

After 19 years in this business, I’ve seen how markets behave when central banks pause, cut, or hold.

Periods like this tend to reward the people who take a calm, strategic approach — not the ones who rush.

If you’re making a move in 2026, the most important thing is clarity:

What do the numbers mean for your budget, your home, and your timeline?

That’s always the conversation worth having.

Thinking About a Move This Year?

If you want a straightforward breakdown of what today’s rates mean for your next purchase or sale — without pressure — I’m always here to help.

Author: Real Insights Group Team | Date: December 08 2025

The Greater Toronto Area (GTA) housing market continued to recalibrate in November 2025 as home sales, new listings, and average selling prices declined compared to the same period last year. The trend reflects a market where many would-be buyers are waiting for stronger economic signals before re-entering the competition.

But beneath the softer year-over-year numbers lies an important story: employment strength, improving economic indicators, and stable month-to-month pricing suggest the foundation for recovery in 2026 is quietly forming.

📉 Sales and Listings Decline as Buyers Wait for Economic Clarity

According to TRREB, REALTORS® reported 5,010 home sales across the GTA in November 2025 — a 15.8% decrease from November 2024. New listings totaled 11,134, down 4% year-over-year.

This cooling is less about lack of interest and more about buyer psychology.

“There are many GTA households who want to take advantage of lower borrowing costs and more favourable selling prices. What they need most is confidence in their long-term employment outlook,”

— TRREB President Elechia Barry-Sproule

Her comment captures the sentiment driving today’s market: demand exists, but confidence needs to catch up.

📊 Month-to-Month Numbers Show Early Signs of Stabilization

While year-over-year figures are softer, seasonally adjusted data paints a more balanced picture:

• Sales dipped only slightly from October to November

• New listings edged lower, keeping inventory healthy but not excessive

• MLS® HPI Composite was marginally down from October

• Average price inched upward month-over-month

In other words: we’re not seeing a downward slide — we’re seeing a market finding its footing.

🏘️ Prices Down Annually — But Holding Steady Month-to-Month

The MLS® Home Price Index (HPI) Composite Benchmark fell 5.8% year-over-year, reflecting the impact of cautious buyers and broader economic uncertainty.

The average selling price reached $1,039,458, down 6.4% from November 2024.

However, on a monthly basis, prices remained stable, signalling that sellers are adjusting realistically while buyers remain selective.

📈 Why 2026 Could See a Rebound: Economic Data Turns Positive

November delivered something the housing market desperately needed: good economic news.

• Employment numbers beat expectations

• Economic growth outperformed forecasts

• Canada showed resilience against trade-related challenges

• Infrastructure plans announced in late 2025 are poised to stimulate jobs and long-term housing demand

“More certainty on the trade front coupled with positive economic impacts of recently announced infrastructure projects could improve homebuyer confidence moving forward,”

— Jason Mercer, TRREB Chief Market Analyst

If this momentum holds, it could create the backdrop for a more confident buyer pool in 2026, particularly in the spring and early fall cycles.

🏗️ A Well-Supplied Market — But Not Indefinitely

Despite moderating demand, the GTA continues to benefit from healthy resale inventory, giving buyers more choice than in previous tight markets.

However, TRREB issues a caution:

“As this inventory is absorbed, new construction is required to fill the housing pipeline,”

— John DiMichele, TRREB CEO

The call is clear:

To stabilize prices long-term and support population growth, Ontario needs more housing — not only condos, not only detached homes, but the missing middle in between.

Expect government incentives and development activity to be major conversations heading into 2026 and beyond.

🔑 The Bottom Line for Buyers and Sellers

For Buyers:

You are currently in one of the most favourable purchasing environments in recent years:

• More listings

• Reduced competition

• Stable month-to-month prices

• Lower borrowing costs compared to peak cycles

As employment data improves, you may not see this level of choice for long.

For Sellers:

While year-over-year prices are lower, stable monthly pricing suggests the market is nearing a baseline. Sellers who price strategically are still securing strong results — particularly in segments with limited supply (detached homes in prime school zones, family-oriented neighbourhoods, and transit-connected communities).

Looking Ahead to 2026

The GTA housing market is transitioning, not declining. Economic strength, job growth, and infrastructure investment will be the biggest catalysts heading into the new year.

If confidence continues to build, 2026 may mark the beginning of a more active and competitive market cycle.

Thinking About Buying or Selling in 2026?

We provides data-backed, neighbourhood-specific advice for buyers, sellers, and investors across the GTA.

If you’d like a custom breakdown of market trends in your area, contact us if want to know where the real opportunities are emerging.

Author: Real Insights Group Team Date: December 2, 2025

The release of the Fraser Institute’s annual school rankings is always a marquee event in the Ontario real estate calendar. While educators look at the scores, we at the Real Insights Group look at the zones.

The 2025 Report Card on Ontario’s Secondary Schools has just dropped, and the results confirm a trend we’ve been tracking for years: York Region and Oakville are solidifying their status as the premier academic (and investment) corridors in the province.

Here is our breakdown of the 2025 winners and the real estate markets they anchor, providing data-driven commentary for the discerning buyer.

🏆 The "Perfect" Score Club (10/10)

This year, four schools achieved a perfect 10/10 rating. If you own property in these catchment areas, you are sitting on a highly liquid asset—a home with a maximum "school zone premium."

• St. Robert Catholic High School (Thornhill)

• St. Therese of Lisieux Catholic High School (Richmond Hill)

• St. Augustine Catholic High School (Markham)

• St. Michael’s Choir School (Toronto)

The Real Estate Insight from Real Insights Group:

York Region Dominance: Three of the four top schools are in York Region (Thornhill, Richmond Hill, Markham). This concentration of excellence is a primary driver for the price resilience we see in these suburbs. Detached homes in the St. Robert and St. Therese zones command significant premiums because they offer the "suburban dream"—large lots paired with elite public education that rivals private tuition.

The Downtown Outlier: St. Michael’s Choir School in downtown Toronto is a unique case. Located in the Church-Yonge Corridor, this area offers a surprising "value" entry point. While the school is specialized, the surrounding real estate is condo-heavy, with median prices significantly lower than the freehold-heavy zones of York Region.

📈 The Heavy Hitters (9.0+)

The full list of schools scoring 9.0 or higher identifies the next tier of "blue chip" neighborhood’. Since multiple schools share a score, this list includes all 19 schools tied for the top 18 ranks, from 10.0 down to 9.0.

York Region (The Undisputed Heavyweight)

York Region continues to be the undisputed heavyweight champion of public education in Ontario. The density of high-ranking schools here translates directly into high demand for homes.

• Pierre Elliott Trudeau (Markham) – 9.5: Consistently anchors the high-demand Berczy Village market.

• Bur Oak Secondary (Markham) – 9.3: A key driver for the Wismer community, popular with families seeking newer detached homes.

• Bayview Secondary (Richmond Hill) – 9.2: Famous for its IB program, this school keeps demand in the Rouge Woods area perpetually high.

• Markville Secondary (Markham) – 9.2: Serves the central Markham area, supporting values near the Markville Mall corridor.

• Unionville High School (Unionville) – 9.0: A staple of academic excellence, sustaining high property values in the Old Town and surrounding areas.

• Thornlea Secondary (Thornhill) – 9.0: Adds another strong option for Thornhill buyers, specifically in the East Willowdale/Thornhill border area.

Oakville (Halton Region)

Oakville's reputation as a family haven is backed by hard data. It is rare to see this many top-tier schools in a single municipality.

• Abbey Park – 9.3: Located in the prestigious Glen Abbey neighbourhood.

• Iroquois Ridge – 9.3: Anchors the north-east Oakville market, known for larger executive homes.

• Gaétan-Gervais – 9.3: A top-tier French-language option that expands the buyer pool in its catchment.

• Oakville Trafalgar – 9.2: The historic powerhouse serving south-east Oakville, often associated with the luxury custom home market.

City of Toronto

While the city is vast, academic excellence is concentrated in specific, highly desirable pockets that savvy investors target.

• Ursula Franklin Academy – 9.7: A highly specialized school boosting desirability in the High Park/Junction area.

• Cardinal Carter Academy for the Arts – 9.3: Located in North York, this specialized arts school draws talent from across the city, boosting local rental and freehold demand.

• Bloor Collegiate Institute – 9.2: Significant achievement for this west-end school, signalling growth in the Dufferin-Grove/Bloordale area.

• Lawrence Park Collegiate – 9.1: Serves one of Toronto’s most affluent neighbourhoods, reinforcing the stability of property values in Lawrence Park.

• Malvern Collegiate Institute – 9.1: A consistent high-performer anchoring the popular Beaches and Upper Beaches communities.

• Leaside High School – 9.1: A top-tier school driving high property demand in the Leaside

City of Mississauga

Mississauga's only entry in the 9.0+ club is an independent school, which significantly influences buyer activity in its central region.

• Olive Grove School – 9.4: A top-tier independent Islamic school, attracting families to the central Mississauga area seeking this elite institution.

🚀 The "Improvers": Where to Look for Future Growth

As investors, we always look for the up-and-coming areas. The report highlighted schools like Georges-P-Vanier in Hamilton and Central Technical School in Toronto as fast improvers.

Strategy: Buying in a district with a rapidly improving school can be a smart long-term play. As the school's reputation rises, demographic shifts often follow, leading to gentrification and property appreciation that outpaces the market average. The Real Insights Group tracks these changes closely to help clients secure future equity.

🔑 The Bottom Line

In Ontario, a school district is never just about education—it’s about equity. The 2025 rankings reaffirm that Markham, Richmond Hill, and Oakville remain the "blue chip" stocks of the school-zone real estate market. For buyers, this sometimes means more competition in these catchments. For sellers, it means you hold a powerful negotiating card.

Want to know exactly which homes fall into any particular School Catchment? Contact the Real Insights Group today for a custom list of available properties in Ontario's top-ranked school zones.

Source: Fraser Institute Report Card on Ontario’s Secondary Schools 2025

The latest October 2025 stats from the Toronto Regional Real Estate Board (TRREB) paint a clear picture: the Greater Toronto Area (GTA) housing market continues to lean in favor of buyers. With home sales dipping and new listings climbing, those who are ready to make a move could find opportunities that simply weren’t available a year ago.

According to TRREB, GTA REALTORS® reported 6,138 home sales through the MLS® System in October — down 9.5% from October 2024. On the other hand, new listings rose by 2.7%, reaching 16,069 homes.

This shift means more options for buyers to choose from, and sellers are feeling the pressure to price more competitively.

💰 Prices and Mortgage Trends

The average selling price in October 2025 was $1,054,372, marking a 7.2% decrease year-over-year. The MLS® Home Price Index (HPI) also dropped 5% compared to last year.

But here’s the silver lining: mortgage rates have eased, and with prices down, monthly payments are becoming more manageable for many buyers.

As TRREB Chief Information Officer Jason Mercer explained, “The monthly mortgage payment for an average-priced GTA home continued to trend lower in October, benefitting from both lower borrowing costs and lower selling prices.”

This combination is giving confident buyers, especially those secure in their employment — a rare opportunity to enter the market under more affordable conditions than we’ve seen in recent years.

While lower prices are good news for buyers, many are still hesitant due to economic uncertainty. TRREB President Elechia Barry-Sproule noted that although some buyers are taking advantage of the current affordability, others remain on the sidelines, waiting for clearer signals about the economy.

Month-over-month data also shows that sales and new listings both dipped slightly from September, suggesting the fall market cooled off earlier than usual.

📌 What the Recent Bank of Canada Rate Cut Means

On October 29, 2025, the Bank of Canada lowered its target for the overnight rate by 25 basis points to 2.25%.

This move is significant for the real estate market for several reasons:

• Lower overnight rates typically influence borrowing costs, including mortgage interest rates, which can make homes more affordable for buyers.

• With the central bank signalling that this cut might be one of the last in this cycle unless inflation or growth deviate significantly, the room for further rate relief may be limited.

• For those considering buying or investing, this rate cut strengthens the argument for acting now before rates potentially rise or remain flat for longer.

In short: lower central-bank rates + lower home prices = enhanced opportunity for qualified buyers. For sellers, it means being realistic about pricing and preparing for competition.

Looking ahead, TRREB CEO John DiMichele emphasized the importance of housing as “essential economic infrastructure” and called for greater collaboration between the public and private sectors. With Ontario’s growing population, he pointed to the need for more innovation, faster construction, and updated government policies, including modernized tax rules and zoning reforms — to meet housing demand.

From my perspective as a local real-estate professional, this is a strategic window for buyers who have been waiting for prices and mortgage rates to align.

While market confidence is still rebuilding, today’s buyers have more negotiation power and less competition compared to the boom years.

If you’re thinking about buying or investing, this could be the right time to explore opportunities especially before market activity picks up again once economic conditions stabilize.

👉 Subscribe to my monthly newsletter for exclusive insights and local market updates

The Greater Toronto Area (GTA) housing market experienced a notable shift in September, driven by improving affordability and a corresponding increase in buyer confidence. Following the Bank of Canada’s recent interest rate adjustment, the market saw renewed engagement, allowing more prospective homeowners to navigate financing options and explore the diverse housing inventory across the region.

Market Activity: Sales Outpace Supply Growth

According to data from the Toronto Regional Real Estate Board (TRREB), September 2025 home sales demonstrated a significant year-over-year increase:

• Sales Growth: GTA REALTORS® reported 5,592 home sales, an 8.5% increase compared to September 2024. This signals a welcome return of buyers previously on the sidelines due to high borrowing costs.

• Supply Dynamics: While new listings also rose by 4% year-over-year (19,260 listings), the pace of sales growth was stronger than the increase in supply.

• Month-over-Month Trend: On a seasonally adjusted basis, September sales were up from August, while new listings actually declined. This suggests a potential tightening of market conditions in high-demand areas, particularly in established communities across Toronto, Vaughan, Markham, and Richmond Hill.

Expert Commentary on Affordability

TRREB President Elechia Barry-Sproule noted the direct impact of the rate decision: “The Bank of Canada’s September interest rate cut was welcome news for homebuyers. With lower borrowing costs, more households are now able to afford monthly mortgage payments on a home that meets their needs.” This improved affordability is anticipated to have a positive ripple effect, supporting related economic activity such as home renovations and local service consumption.

Price Stability on the Horizon?

Despite the rise in sales, aggregate home prices continued to adjust compared to the previous year, offering buyers favorable conditions.

• Year-over-Year (YoY) Prices: The MLS® Home Price Index (HPI) Composite benchmark was down 5.5% YoY, and the average selling price decreased by 4.7% to $1,059,377 compared to September 2024.

• Month-over-Month (MoM) Stability: A closer look at the MoM figures suggests prices may be finding a floor. The average selling price was virtually flat from August (up 0.2%), and the HPI Composite only edged down 0.5%. This indicates a potential stabilization as greater demand absorbs available inventory.

Strategic Outlook for Buyers and Sellers

The current environment presents distinct opportunities for both sides of the market:

• For Buyers: The fall market offers a strategic advantage: lower interest rates, continued strong selection, and a potential window for negotiation. However, sustained demand coupled with slowing new listings could lead to increased competition moving forward.

• For Sellers: Strategic and realistic pricing remains paramount. Well-maintained and properly positioned properties continue to attract qualified buyers, especially those located near key amenities, transit, and quality schools.

TRREB’s Chief Information Officer, Jason Mercer, also emphasized the long-term context: “Two more 25-basis-point interest rate cuts by the Bank of Canada would see monthly mortgage payments move more in line with homebuyers’ average incomes, further spurring home sales and related economic activity.”

In summary, the September GTA market showed encouraging signs of recovery driven by improved financial accessibility. While the market is still below its long-term historical norms, the combination of rising sales and stabilizing prices suggests a foundation is being set for future growth, contingent upon ongoing economic stability and rate decisions.

Stay Informed

Understanding the nuances of the GTA market is critical for making informed real estate decisions.

• If you are considering a purchase, leveraging the current buyer-favorable conditions requires timely market insight.

• If you plan to sell, a refined, data-driven strategy is essential to maximize your property's value as demand continues to rise.

Subscribe to my market intelligence newsletter for exclusive updates, local housing analysis, and strategic property information delivered directly to your inbox.

If you’ve noticed headlines about interest rates dropping again, you’re not imagining things. The Bank of Canada has just reduced its key overnight rate by 0.25%, bringing it down to 2.5%.

This might sound like “banker talk,” but it actually matters a lot for your mortgage, your savings, and even your everyday purchases.

Why Did the Bank of Canada Cut the Rate?

The economy has been struggling under the weight of tariffs, trade uncertainty, and slower global growth.

📉 Key points from the latest report:

• Canada’s GDP shrank by 1.5% in Q2.

• Exports plunged by 27% after U.S. tariffs kicked in.

• Unemployment rose to 7.1% in August.

• Inflation held steady at 1.9%, close to target.

By cutting rates, the Bank of Canada hopes to make borrowing cheaper, support growth, and keep confidence steady.

What’s Happening in the U.S.?

It’s not just Canada making moves. The U.S. Federal Reserve also lowered its benchmark interest rate by 0.25%, bringing it to 4.00–4.25%.

Why?

• Job growth in the U.S. has slowed.

• Unemployment is ticking higher.

• Inflation is still running hot, around 2.9%.

The Fed hinted that more rate cuts may be on the way in 2025 to keep the U.S. economy from stalling.

Both Canada and the U.S. are lowering rates, but for slightly different reasons. Canada is reacting to trade shocks and weak growth, while the Fed is balancing stubborn inflation with a cooling job market.

How This Affects You

Even if you don’t follow interest rates closely, they show up in your daily life. Here’s how:

1. Borrowing Costs

   • If you have a variable mortgage, line of credit, or floating-rate loan, your payments may decrease.

   • Lower rates means lower borrowing costs.

2. Savings & Investments

   • GICs and savings accounts may earn less interest when rates drop.

   • Investors may start looking at stocks or other assets for better returns.

3. Housing Market Trends

   • Lower rates can boost demand, making it easier for buyers to qualify for mortgages.

   • But higher demand could also put pressure on home prices.

Looking Ahead

The next Bank of Canada decision is set for October 29, 2025. Until then, here’s what policymakers are watching closely:

• How exports recover (or don’t) under U.S. tariffs

• Whether businesses keep cutting investment and jobs

• How households adjust their spending

• Whether inflation stays on track around 2%

The Fed, meanwhile, is expected to cut rates further if the labor market weakens. That means global monetary policy is leaning toward easing which could support growth but also bring new uncertainties.

Keeping an eye on rate changes can help you:

• Plan your budget better

• Time major purchases

• Make smarter investment choices

Because in today’s economy, what you don’t know about interest rates really can cost you.

📬 Want updates like this delivered straight to your inbox? Subscribe to my newsletter to stay ahead of the curve.

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

GTA Home Sales: Slight Uptick Year-Over-Year

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.

New Listings: More Supply, More Options

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.

Home Prices: Holding Steady but Down Year-Over-Year

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.

What This Means for Buyers and Sellers in the GTA

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!

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.

What Exactly Is the 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.

Why Does the Bank of Canada Change the Rate?

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:

How Does the Overnight Rate Actually Work?

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.

The Overnight Rate During COVID-19

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.

How Does This Affect You in the Real World?

Even if you’ve never heard of the overnight rate before, its effects probably show up in your wallet. Here’s how:

1. Borrowing Costs

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.

2. Savings & Investments

GICs and savings accounts offer better returns when rates are high. When rates drop, savers often look to riskier investments for better yields.

3. Housing Market Trends

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.

What’s Happening in 2025?

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.

Inflation vs. Trade Tensions

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.

Why You Should Pay Attention

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.

The Greater Toronto Area (GTA) just recorded its best July for home sales since 2021, that has real estate professionals and buyers paying close attention.

According to the latest figures from the Toronto Regional Real Estate Board (TRREB), a total of 6,100 home sales were reported through the MLS® System in July 2025, representing a 10.9% increase compared to July 2024. New listings were also up by 5.7% year-over-year, reaching 17,613.

As a real estate professional working in the GTA, I’m seeing firsthand how market conditions are shifting. This isn't just a seasonal bump; improved affordability and lower borrowing costs are gradually bringing more buyers back into the market.

What’s Driving the Increase in Home Sales?

TRREB President Elechia Barry-Sproule put it well “Improved affordability, brought about by lower home prices and borrowing costs, is starting to translate into increased home sales. More relief is required, particularly where borrowing costs are concerned, but it’s clear that a growing number of households are finding affordable options for homeownership.”

Let’s break that down:

• Home prices have decreased:

  The MLS® Home Price Index Composite benchmark fell by 5.4% year-over-year.

• Average selling price sits at $1,051,719, a 5.5% drop from July 2024.

• More households can now enter the market, particularly first-time homebuyers and families looking to upsize.

These are significant shifts. After several years of rapidly rising home prices and interest rate hikes, many buyers took a wait-and-see approach. But now, with a bit of breathing room, confidence is starting to return.

A Tighter Market, But Not Overheated

While sales rose sharply compared to new listings, listings did not keep pace a sign of modest tightening in market conditions.

From a seller’s perspective, this could mean a slight advantage: more buyer competition and fewer available properties.

From a buyer’s side, it means more urgency, but also more opportunities, especially in neighborhoods where prices have softened but value remains strong.

On a seasonally adjusted basis, both home sales and new listings rose compared to June 2025, but sales rose at a higher rate, another indicator that demand is outpacing supply just slightly.

Housing as a Catalyst for Economic Growth

In a broader economic context, TRREB Chief Information Officer Jason Mercer highlights how the housing market could play a pivotal role in driving domestic growth “The housing sector can be a catalyst for growth, with most spin-off expenditures accruing to regional economies. Further interest rate cuts would spur home sales and see more spin-off expenditures, positively impacting the economy and job growth.”

This underscores why real estate isn’t just about property it’s tied to construction jobs, legal services, moving companies, furniture sales, renovations, and more. When home sales pick up, the entire ecosystem benefits.

Foreign Buyers and the Truth Behind the Ban

There’s also a misconception circulating that foreign nationals are completely banned from buying residential property in Canada. That’s not entirely accurate.

TRREB CEO John DiMichele clarified: “There are exemptions that allow non-residents to buy property, resulting in spin-off benefits to the economy.”

Foreign buyers can still purchase:

• Multi-unit residential buildings (4+ units)

• Vacant land or development land

• Recreational or rural properties outside urban centres

So, despite restrictions, international interest remains a factor, especially in the luxury and development sectors.

What This Means for You

If you're a buyer looking for your first home, a seller wondering if it's the right time to list, or an investor eyeing the long-term picture, the GTA housing market is showing positive momentum.

Key takeaways:

• Prices are more affordable than last year.

• Interest rates are stabilizing.

• Demand is returning gradually but steadily.

• Market conditions are tightening, but not overheated.

As a real estate professional here in the GTA, I’m keeping a close eye on this evolving landscape. If you’re thinking of making a move, let’s have a conversation about where the opportunities lie in today’s market.

Get professional guidance based on real-time market data and local insights. Contact me today for a no-obligation consultation.

The Bank of Canada recently announced that they will be holding its key policy rate steady at 2.75%

Now, what does that actually mean for the real estate market and your next move?

💡 Quick Overview

The Bank of Canada decided not to change its interest rate. This key rate is the one that influences how much banks charge us on loans, mortgages, and lines of credit.

Right now:

• Policy rate stays at 2.75%

• Bank rate at 3%

• Deposit rate at 2.70%

In simple terms, borrowing costs are holding steady for now.

🌍 What’s Behind the Decision?

Global trade tensions are still simmering, especially between the U.S. and other countries. Tariffs are making things unpredictable. These tensions affect everything from the cost of goods to how businesses operate, and even the strength of our own economy here in Canada.

Despite all this, Canada’s economy has shown some resilience. We had strong growth earlier this year, but that was partly due to businesses rushing to export goods ahead of new U.S. tariffs. After that rush, the economy slowed down a bit, GDP likely shrank by 1.5% in Q2.

And while unemployment is up slightly (6.9% in June) and wage growth is slowing, the overall picture isn’t all doom and gloom. Some sectors are still hanging in there.

🏘️ Why It Matters for Buyers and Sellers

If you're a buyer, this pause in interest rate changes is actually welcome news. It signals stability. Mortgage rates are closely tied to these decisions and with no hike this month, you're not seeing your future payments creep higher (at least for now).

If you're a seller, this stability helps buyer confidence. When borrowing costs are predictable, more people feel comfortable entering the market. That can help support demand for your property.

Plus, inflation is currently sitting around 2%, which means the Bank of Canada isn’t in a rush to cool the economy further unless something shifts.

What Could Happen Next?

The Bank is watching several moving parts closely:

• Will U.S. tariffs slow our exports more?

• Will uncertainty make businesses pull back on hiring or investing?

• Will inflation heat up if companies pass on more of their cost increases?

If trade disruptions ease or the economy weakens further, there could even be a rate cut in the future. On the flip side, if inflation surprises on the upside, the Bank might have to tighten again.

What Should You Watch As a Buyer or Seller?

1. Mortgage rates: No change now, but keep your eye on fixed vs. variable trends.

2. Inflation: If inflation stays tame, pressure for rate hikes eases, this is a good news for affordability.

3. Economic confidence: The more stable things feel, the more active buyers and sellers become.

4. Global trade headlines: What’s happening in the U.S. and China might sound far away, but it has ripple effects here especially if it impacts jobs and costs.

📅 What’s Next?

The next Bank of Canada rate decision comes on September 17, 2025. That’s the date to circle if you’re watching the market or thinking of making a move.

We’re in a wait-and-see phase. Rates are holding steady, the economy is adjusting, and the real estate market is still finding its rhythm in this post-tariff, post-pandemic world. Whether you're buying your first home, upsizing, or planning to sell, it's a good time to stay informed and to keep asking the right questions.

If you ever want to talk through how all of this might affect your next step, we're always here to help interpret the bigger picture. But for now breathe easy, the rates are staying put.

Subscribe to our newsletter to stay posted on future rate updates.

Affordability improves, but uncertainty lingers. Here’s what homebuyers and investors need to know.

If you've been sitting on the fence about entering the Greater Toronto Area real estate market, you’re not alone. June 2025 saw some interesting developments that could tip the scales for buyers but it's not as straightforward as just price drops or lower rates.

Whether you're a first-time buyer looking to secure your starter home, or an investor waiting for the right conditions to expand your portfolio, this month’s market snapshot is worth a closer look.

Let’s break down what’s happening, why it matters, and what it could mean for your next move in real estate.

✅ Affordability is Improving — But Caution Remains

Good news first: housing affordability continued to improve in June 2025.

That’s largely thanks to two things:

• Lower average selling prices compared to this time last year

• Reduced borrowing costs (interest rates aren’t as punishing as they were in 2024)

The average GTA home sold for $1,101,691 in June, which is 5.4% lower year-over-year. This drop, combined with easing mortgage rates, means that monthly payments are becoming more manageable for many households.

But here’s the twist: despite these improvements, many potential buyers are still hesitant. Economic uncertainty ranging from trade tensions to crime and safety concerns continues to influence consumer confidence.

📉 Sales Are Down Year-over-Year, but Rising Month-to-Month

Let’s talk numbers:

• 6,243 home sales were recorded in June, a 2.4% drop from June 2024

• But on a seasonally adjusted basis, sales were up compared to May 2025

• New listings rose year-over-year by 7.7%, giving buyers more choice

• Month-over-month, however, listings actually dropped tightening inventory again

What does that mean?

There’s more selection than last year, and buyers are negotiating better deals, especially with sellers adjusting to current price trends. But fewer new listings in recent weeks could put upward pressure on prices if buyer activity picks up.

🧠 What This Means for Buyers and Investors

🏠 First-Time Buyers:

This could be the window of opportunity you've been waiting for.

With more room to negotiate and slightly lower prices, you have a better chance of entering the market before it heats up again. Just keep in mind that economic uncertainty still lingers, so make sure your financial foundation is solid before diving in.

💼 Investors:

Lower prices and more supply could signal smart buying opportunities especially if you’re looking to flip or rent. But remember: the market isn’t booming just yet. You may need to play the long game for returns, especially if you’re eyeing appreciation-based gains.

💬 Looking Ahead: What Could Shift the Market Next?

According to TRREB’s Chief Information Officer, two additional interest rate cuts and improved U.S.-Canada trade relations could give the market a significant boost. Lower borrowing costs would make homeownership even more attainable, potentially increasing competition and raising prices again.

There’s also growing concern around public safety, with a spotlight on home invasions and carjackings in the GTA. While the government is working on tougher crime legislation, this issue could influence neighborhood desirability and buyer confidence in specific areas.

The GTA housing market is showing signs of steady recovery, and there are opportunities for strategic buyers and investors. But it’s not a free-for-all—uncertainty still plays a big role in decision-making.

If you’re thinking about buying, stay informed, assess your risk tolerance, and work with professionals who understand the current landscape. The rest of 2025 could bring more shifts—so be ready to move when the time is right.

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The Greater Toronto Area (GTA) real estate market showed more signs of change in May 2025, offering improved affordability and greater housing inventory compared to the same time last year. While home sales were down, more listings gave buyers better choices and stronger negotiating power.

If you’ve been watching the Toronto housing market and wondering if now is a good time to buy, here’s what you need to know.

🔍 What Happened in the GTA Housing Market – May 2025

According to the Toronto Regional Real Estate Board (TRREB), there were 6,244 home sales in May 2025, which is 13.3% fewer sales compared to May 2024. However, new listings went up by 14%, reaching a total of 21,819 homes listed on the MLS® System.

This means buyers now have more options than they did last year, which helps them take their time, compare properties, and negotiate better deals.

“Homebuyers have certainly benefited from greater choice and improved affordability this year,” said TRREB President Elechia Barry-Sproule. “But each neighbourhood is different, and working with a REALTOR® who knows your area is key.”

💰 Have Home Prices Dropped in the Greater Toronto Area?

Generally speaking, yes. Average prices have come down a bit. The average across the GTA was $1,120,879 in May 2025—down 4% year-over-year. The MLS® Home Price Index, which measures home value trends more accurately than averages alone, also dropped 4.5% compared to May 2024. Not all property types and areas are equal with some doing better then others.

However, compared to April 2025, both prices and sales slightly increased month-over-month, showing early signs of stability in the market.

📉 Why Are Sales Still Down?

You might wonder if homes are more affordable and borrowing costs are lower than last year, why are fewer people buying?

TRREB Chief Information Officer Jason Mercer explained that the slowdown isn’t just about prices or mortgage rates—it’s about economic confidence.

“Once households feel more secure about trade stability and economic growth, home sales will likely pick up. A further drop in interest rates would also encourage more activity, especially from first-time buyers.”

🏗️ What Could Help Canada’s Housing Market?

TRREB’s leadership also called for more action from the federal government to address long-term housing affordability. Some key suggestions include:

• Lowering housing taxes and fees

• Encouraging innovative construction technologies

• Speeding up the home building approval process

• Supporting more housing development across Canada

“Home construction not only adds supply but also boosts the economy. And with inflation staying low, a rate cut would help even more,” added TRREB CEO John DiMichele.

The Toronto real estate market in May 2025 is leaning more in favor of buyers, thanks to more homes for sale and softer prices. Still, many people are cautiously waiting for better economic news or lower interest rates.

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