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Sep 08
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The Exhibition

August 2025 Toronto Real Estate Market Update

By Monthly Market Updates

If it felt like the market hit pause in August… it kind of did.

Between vacations, back-to-school prep, and one last cottage weekend, it’s no surprise that activity slowed across the board. For our team — and many of our clients — the majority of the month was spent away from the action. Historically, August tends to be one of the sleepiest months in Toronto real estate, and this year followed that familiar script.

That said, a quiet market doesn’t mean a stagnant one. Beneath the surface, some subtle (and potentially significant) shifts took place.

Sales Slow, Listings Rise – A Buyer’s Market (On Paper)

The Toronto Regional Real Estate Board (TRREB) reported 5,211 sales in August 2025 — a 2.3% increase year-over-year, but a sharp 14% decline from July. That drop wasn’t unexpected, given the seasonal slowdown. What stood out more was the surge in new listings: 14,038 properties hit the MLS, up 9.4% from last year and higher than July’s tally.

In plain terms: buyers had more to choose from, and fewer competitors to contend with.

TRREB President Elechia Barry-Sproule put it this way: “With the economy slowing and inflation under control, additional interest rate cuts by the Bank of Canada could help offset the impact of tariffs. Greater affordability would not only support more home sales but also generate significant economic spin-off benefits.” (FYI, the Bank of Canada is meeting on Sept 17th to decide on the policy interest rate)

You can almost hear the fall market gears warming up… but then again, who really know!?!

Toronto Skyline
Toronto Skyline

Pricing Holds Steady — But Down From Last Year

The average selling price in the GTA came in at $1,022,143 — down 5.2% year-over-year and 2.81% from July. The MLS Home Price Index (HPI) Composite also fell 5.2% annually but held flat month-over-month.

That month-over-month stability may seem like good news for sellers, but context is everything. Properties sat longer, with average days on market rising to 49 — the second slowest pace of the year (only January was slower at 55 days).

In short: homes are still selling, but not without negotiation — and patience.

Condos: The Softest Spot on the Map

Of all housing types, the condo segment saw the steepest summer dip. Just 890 condo sales were recorded — making it the third weakest month of 2025. Prices followed suit, with the average condo selling for $667,660, marking the worst monthly performance of the year.

That said, inventory remains healthy and choice is abundant — which could be a silver lining for buyers looking to enter the market or make a move-up purchase.

What This Means for Fall (And Why September Matters More Than Ever)

August may have been sluggish, but fall could be a different story. With many buyers and sellers returning from summer break, we expect momentum to pick up in September.

TRREB Chief Information Officer Jason Mercer noted that, even with lower borrowing costs and softer pricing, affordability remains a challenge. But any additional cuts from the Bank of Canada — like the ones forecasted this fall — could bring sidelined buyers back into the game.

What Buyers and Sellers Should Know Right Now

For Buyers:

  • Inventory is your advantage. With listings up and competition low, now’s the time to shop around and negotiate with confidence.
  • Interest rate cuts may be coming. Acting before they hit the headlines could save you from bidding wars down the road.
  • Condos are especially soft. If you’ve been eyeing a unit downtown or looking for an investment property, this could be the moment to pounce.

For Sellers:

  • Buyers are cautious, not absent. Presentation, pricing, and patience are key.
  • Prep now for the fall surge. We expect renewed activity in September — having your listing market-ready could pay dividends.
  • Highlight value. With affordability still a top concern, make sure your home’s best features are front and centre.

Final Thoughts – Don’t Sleep on the Slow Months

Yes, August was quiet. But that silence came with a lot of signal: more listings, longer days on market, and room for negotiation across nearly every housing segment.

Sellers: now’s the time to prep your listing for fall. Presentation, pricing, and timing will matter more than ever.

Buyers: if you’ve been waiting on the sidelines, this might be the moment to step in. Less competition. More inventory. And the possibility of more favourable rates ahead.

After a well-earned summer breather, Toronto’s market is gearing up again — and we’re here to help you navigate what’s next.

Looking to buy or sell this fall?
Reach out to the Toronto Livings team — even if August was all about rest, we’re ready to help you move forward in September.

May 24
Love0

Should You Go Fixed or Variable on Your Mortgage in Toronto?

By Advice For Buyers

Let’s talk about one of the biggest questions plaguing buyers (right after “Do we really need a powder room on the main floor?”): fixed or variable mortgage?

It’s not just a financial decision—it’s emotional. It’s about your risk tolerance, your long-term goals, and what kind of sleep you want at night. And in Canada’s current rate environment, it’s more relevant than ever.

The Basics: What’s the Difference?

Let’s start with the basics.

A fixed-rate mortgage locks in your interest rate for the entire term. You get predictability. Your payment doesn’t change, which makes budgeting a breeze. Whether rates skyrocket or sink, your monthly payment stays the same.

A variable-rate mortgage fluctuates with the lender’s prime rate, which is tied to the Bank of Canada’s overnight rate. That means your interest costs—and sometimes your payment—can rise or fall during the term. Some lenders offer variable products with fixed payments, where more or less goes toward the principal depending on rates.

What’s Happening in 2025?

As of spring 2025, the Bank of Canada has already started trimming rates after a prolonged tightening cycle. Inflation has cooled somewhat, and there’s widespread speculation that rates will ease further into 2026.

That’s got many Canadians thinking: should I ride the wave down with a variable rate, or lock in now just in case we’re in for more surprises?

When Fixed Rates Make Sense

Choose a fixed rate if:

  • You’re risk-averse and don’t want to gamble with future payments.

  • You’re stretching your budget and can’t afford payment fluctuations.

  • You expect interest rates to rise again, or at least stay high.

  • You need certainty—say, you’re buying your first home and just want one less thing to worry about.

Fixed is the vanilla ice cream of mortgages. Safe, stable, and not likely to ruin your day.

When Variable Rates Might Be the Smart Play

Consider a variable if:

  • You have room in your budget and can handle short-term bumps.

  • You believe rates will drop over the next 12–24 months.

  • You want to take advantage of prepayment privileges (variable mortgages often come with lower penalties).

  • You’re planning to sell or refinance in the near future and don’t want to get dinged with steep fixed-rate penalties.

Some of the savviest investors and seasoned buyers opt for variable—but they’re also the types who read Bank of Canada statements like bedtime stories.

Reality Check: What About Hybrid Mortgages?

If you’re feeling indecisive (no shame!), you could split the difference. Some lenders offer hybrid mortgages, where part of your loan is fixed and part is variable. It’s a bit more complex, but could offer a best-of-both-worlds solution for buyers with one foot in each camp.

Mortgage Strategy Should Match Your Life Strategy

Maybe you’re a new homeowner with tight margins. Maybe you’re upgrading and renting out your old condo. Maybe you’re a serial mover chasing the next hot neighbourhood. Your mortgage should match your life—not just market forecasts.

Here’s the truth: both fixed and variable rates can be the “right choice” depending on your situation.

What We’re Telling Clients in Toronto

Right now, many of our buyers are leaning toward shorter-term fixed mortgages—think 1 to 3 years. That way, they lock in predictability but keep the door open to refinance if rates drop.

Others are sticking with variable rates with the confidence that they’ll see savings over the next few years—especially if they’re not planning to break the mortgage early.

The key? Talk to a mortgage broker you trust. Get the real numbers, not just the sales pitch. We’ve worked with some excellent brokers across Toronto, and we’re happy to introduce you.

Final Thought

Listen, the decision between fixed and variable isn’t just about the math—it’s about peace of mind. Don’t pick the product that looks smartest on paper. Pick the one that lets you sleep well and move forward confidently.

Want help running the numbers or connecting with a great mortgage pro? Reach out to us here and we’ll guide you every step of the way.