By Shawn Sun | Real Estate Broker, Mr. Sold Group
No Rate Cuts in June—And That’s the Point
On June 5, 2025, the Bank of Canada announced that its key interest rate would remain at 5.00%, marking the second consecutive hold.
The central bank cited persistent inflation in the services sector and emphasized the need for “greater confidence” before easing monetary policy.
This decision underscores a clear message: markets should not expect a rapid rate-cutting cycle. The era of cheap borrowing is not returning anytime soon.
How This Impacts the Housing Market
1. Mortgage Affordability Pressure Persists
Monthly payments remain elevated. For buyers relying on financing, higher rates continue to impact both affordability and purchasing power.
For example, a $700,000 mortgage at 5% interest over 25 years results in approximately $4,070/month in payments—roughly $400 higher than at 4%. This delta compounds quickly for buyers already facing tightened budgets.
2. Sellers Are Becoming More Realistic
With no immediate recovery in sight, many sellers—particularly investors and downsizers—are opting to list sooner rather than later.
We are seeing an increase in inventory across many GTA submarkets, with more price reductions and an emphasis on certainty over speculation.
3. Transactions Are Slower, but Listings Are Rising
The typical summer increase in sales activity has not materialized.
According to the Toronto Regional Real Estate Board (TRREB), sales volume in May 2025 fell 12% year-over-year, while new listings rose 9%. This divergence indicates increased seller participation, but a cautious buyer base.
Buyers are not in a rush—and that’s intentional.
4. From Speed to Strategy: Buyer Behavior Has Shifted
The post-pandemic housing market was dominated by urgency and competition.
Today’s market is defined by patience, research, and negotiation.
Buyers are no longer asking, “How fast can I secure this property?”
They are asking, “Is this a good deal based on current fundamentals?”
This shift marks a critical change: from emotionally driven purchases to rational, value-based decisions.
Fundamentals Over Hype
The real estate market in the Greater Toronto Area has moved beyond policy-driven optimism. The 2024 rate cut cycle provided only a modest rebound. With back-to-back pauses in 2025, buyers and sellers alike are recalibrating expectations.
What we are seeing is not a collapse, but a normalization. A market that once moved on anticipation is now grounded in performance, data, and fundamentals.
This is a buyer’s market—not in the sense of deep discounts, but in the sense that buyers have time, leverage, and options.
Final Thought
As a full-time real estate broker working across the Greater Toronto Area, I bring more than just listings and transactions—I bring market judgment informed by on-the-ground experience.
Over the past several years, I’ve guided clients through competitive bidding wars, uncertain rate cycles, and shifting buyer psychology. In today’s environment, what makes the difference is not speed, but insight: knowing when to negotiate, what to prioritize, and how to structure a winning offer.
If you’re looking to navigate the 2025 market with clarity and confidence, I’d be glad to offer a strategic perspective based on real numbers—not speculation.
– Shawn Sun
Real Estate Agent | Mr. Sold Group
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