GTA Housing Market Sees More Choice and Lower Prices – October 2025 TRREB Market Watch
November 6, 2025
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“Affordability Improves as Prices Ease and the Bank of Canada Cuts Rates to 2.25 %”
Market Overview: Buyers Regain Flexibility
In October 2025, the Greater Toronto Area (GTA) housing market showed further signs of cooling as new listings continued to rise and selling prices adjusted downward. After several years of strong seller’s-market conditions, the market has now shifted closer to balance, giving buyers more choice, time, and negotiating power than in previous years.
Sales fell modestly, but with more listings and softer pricing, buyers had more negotiating room and time to act. Homes continued to sell more slowly, with average time on market exceeding 30 days. Detached homes continued to lead price declines, while condo apartments showed more resilience, reflecting strong demand for affordability in urban cores.
Bank of Canada Cuts the Overnight Rate to 2.25 %
On October 29, 2025, the Bank of Canada (BoC) reduced its overnight rate by 25 basis points to 2.25 %, signaling a shift toward supportive policy as the economy adjusts to slower growth and easing inflation. The prime rate now sits near 4.7 %, lowering variable mortgage rates across major lenders.
BoC Key Statements:
“Monetary policy is now at about the right level to keep inflation close to 2 per cent while helping the economy through this period of structural adjustment.” — Bank of Canada, October 29 2025 Press Release
Market Conditions: Buyers’ Market Holds Steady
The sales-to-new-listings ratio (SNLR) remained near 38 %, solidly within buyer’s-market territory (below 40 %).
TRREB President Elechia Barry-Sproule noted: “Buyers confident in their employment and long-term affordability are benefitting from the most favourable conditions in recent years.”
TRREB’s Chief Market Analyst Jason Mercer added: “Monthly mortgage payments for an average-priced GTA home continued to trend lower, helping more households meet ownership goals.”
Economic Context
Inflation: Trending near 2 %, within target range (BoC, October 2025).
GDP Growth: Forecast ≈ 1.2 % (2025), 1.1 % (2026).
Unemployment: ~ 8.9 %
Policy Outlook: BoC signals rates are likely near the bottom of the easing cycle. Further cuts are possible but not guaranteed as inflation stabilizes.
✅ Lower mortgage rates and softer prices create a rare affordability window. ✅ More listings mean greater leverage and flexibility in negotiations.
Sellers
⚠ Price competitively – buyers are selective. ⚠ Homes in move-in condition or desirable neighbourhoods continue to attract strong interest.
✍️ Key Takeaway
With prices moderating, mortgage rates falling, and inventory improving, Toronto’s market is correcting, not crashing. If economic uncertainty settles in 2026, this fall’s buyers may be positioned ahead of renewed demand.
📩 Ready to plan your next move? Please drop an email to: opel@opelou.com Let’s discuss a data-driven strategy for your buy or sell..
🖋️ Opel Ou, Real Estate Broker, FRI, SRES, CCGR Real Estate made clear, one smart move at a time!
* **In conjunction with TRREB’s redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years**
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