June 2025 Toronto Real Estate Update: Rate Hold Creates Opportunity for Buyers

The real estate market in Toronto is shifting — and if you’ve been waiting to buy or sell, now is the time to pay close attention. The Bank of Canada held its benchmark interest rate at 2.75% on June 4, 2025, signaling a pause in rate cuts and a cautious approach to inflation and economic uncertainty.

Here’s what it means for you and the local market.

📉 Home Prices Still Soft — Great News for Buyers

• Average home price in Toronto: ~$1.01 million (down 4.5% YoY)
• Detached homes: ~6% price drop, average ~$1.33 million
• Condos: Down nearly 7%, average ~$700,000

We’re in a clear buyer’s market with more listings and longer time on market. If you’ve been waiting for prices to drop, this is your window of opportunity.

📊 What’s Driving the Market?

• 🔹 Bank of Canada rate hold: Held at 2.75% to monitor sticky core inflation and global trade uncertainty
• 🔹 Inventory is high: Listings up 20–65% YoY across most home types
• 🔹 Sales-to-new-listings ratio: Around 29% — firmly a buyer’s market
• 🔹 Days on market: Now 39 days, up from 28 last year

🔮 Outlook for Summer 2025

As the BoC keeps interest rates stable, many buyers are regaining confidence. Experts expect possible rate cuts later in 2025, which could reignite demand and raise prices again.

If you’re thinking about buying — acting before rate cuts may help you secure a better deal.

💡 Tips for Buyers & Sellers

For Buyers:

✔️ Explore high-inventory neighborhoods like Richmond Hill, Newmarket, and North York

✔️ Get pre-approved before rates shift again

✔️ Use current conditions to negotiate lower prices

For Sellers:

✔️ Stage your home professionally

✔️ Price competitively based on neighborhood data

✔️ Work with a REALTOR® who understands buyer psychology in today’s market