What’s Up with the Housing Market: Are Buyers on Strike?
If you blinked you would have missed it. The housing market was on fire in February with houses on the mls (multiple listing service) seeing record price increases.
Home buyers were lined up down the street to get a showing. Open houses were bursting at the seams. It was not uncommon to receive 30 offers on a house and have it sell for thousands of dollars above the asking price.
There simply was not enough housing supply to keep up with the buyer demand. This led to an unprecedented market. It was a terrible situation for buyers to try and buy a home and absolute calamity for most home sellers, unless you moved to a hotel—which some sellers did. A crazy environment for buyers and sellers.
Today it’s the polar opposite. Selling your home is no longer quick. Some home sellers are begging for an offer. Others struggle to even get showings.
Home equity is dwindling compared to purchase prices of February. It is literally the opposite of February’s market. Certain sellers are panicking because they bought a house banking on the proceeds from their sale.
So, what’s in store for the market? I’ll liken it to a Saturday afternoon cruise down Highway 401. Your speedometer says 160 km/h. You’re driving a Lamborghini and there are no speed traps in sight.
Then, off in the distance, there are red lights. Traffic is building and, all of a sudden, you’re forced to reduce your speed because you’ve come upon a traffic jam.
The traffic jam represents buyer fatigue, astronomical seller price expectations and rising interest rates. Like a traffic jam, these factors cause the market to slow down.
The Central Bank of Canada made it clear they would raise interest rates in the short term affecting monthly mortgage payments (monthly payments) on fixed rate mortgages and variable rate mortgage payments. A recent update by Connolly Capital Mortgage Solutions, a leading Canadian mortgage brokerage, shows Canada’s 5-year government bond has been volatile as of late, but has consistently remained under 3% for the last three months.
Investors and banks are pricing for inflation risk, so they are continuing to raise fixed rates. Conventional fixed rates are well over 4.50% now and alternative lending deals are over 5.00%.
Why does this all matter? It matters because it affects interest rates and iterate rates affect a buyer’s ability to borrow money. The higher the interest rate the higher the cost to borrow. Other factors like the consumer price index (CPI) and inflation (rising costs of goods and services) will affect a buyer’s ability to get a mortgage loan.
The consensus appears to indicate another 0.50% hike to the Bank of Canada’s Prime Lending Rate. This would bring the Prime to 3.70%. Ultimately, the Bank of Canada is slowing growth by raising rates, which is affecting purchase prices amongst housing and other goods and services. Home buyers will continue to shop banks and alternative lenders for the lowest rate.
Most home buyers will ultimately have to decide whether to go with a fixed rate mortgage or a variable rate mortgage. It’s recommended to speak to a mortgage broker (or mortgage brokerage) or your financial institution and build a plan based on potential annual percentage rate (APR) increases or decreases. They may have to increase the amortization period to bring down monthly payments.
They can help determine monthly mortgage payments based on a home’s equity. This can help save you thousands of dollars just by strategizing. It’s also beneficial to know what your regular payments will be.
So, what’s in store for the remainder of the year? Where did all the pent-up demand from buyers go that was so abundant in the first quarter? Don’t be surprised if the market does normalize.
Buyers will be used to higher interest rates. Sellers’ expectations will have adjusted and people need homes for growing families, downsizing, readjusting capital, investment and for many other reasons. Don’t be surprised if the market picks up steam towards the end of the year—albeit, perhaps, not at the rate we saw in February.
Immigration continues to be a big factor when it comes to forecasting the housing market. With north of 400,000 immigrants coming to the country a year, this creates demand. And demand affects housing prices. The real estate market is driven by supply and demand. Mortgage rates will affect rising house prices in the interim with mortgage payments increasing. Real estate agents know all to well that dips in the market do happen. Inflation prices across the board are being curbed by the bank of Canada to slow prices. Especially for Toronto house prices, one could argue we need a break pedal.
Mississauga real estate prices have dropped on a detached home for the first time in a long time but there continues to be demand. The same goes for Oakville housing prices, Burlington and Hamilton Housing prices. With new immigrants wanting to live in the GTA, it’ll be interesting to see where there tipping point of supply and demand plays out.
Tertiary markets like London continue to be a hot bed for investors and young families looking for more affordable housing. London home prices have dropped marginally but continue to do well because of higher demand.
The Burlington housing market should be quick to rebound given its proximity to the city of Toronto and family favorable neighbourhoods.
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August 2025 GTA Real Estate Market Update | Regan Irish
The August 2025 GTA Real Estate Market Update reflects renewed momentum and affordability in Toronto, Oakville, Mississauga, Burlington, and Muskoka. Thanks to steady interest rates and appealing home prices, July proved surprisingly dynamic. Let’s dig into the numbers and what they mean for you.
Interest Rates Remain Stable — Affordability Fueling Activity
In July 2025, the Bank of Canada maintained its key rate at 2.75%, its third consecutive pause. With lower borrowing costs now more accessible, affordability is encouraging a wave of renewed buyer activity.
GTA Market Overview: Sales Surge, Prices Slightly Dip
- Home Sales: 6,100+ transactions region-wide, marking a 10.9% increase YoY and the strongest July since 2021.
- Month-over-Month: Seasonally adjusted sales rose 13% from June to approximately 5,744 units, the biggest monthly gain in nine months.
- New Listings: Up 5.7% YoY, totaling 17,613 new offers.
- Price Trends:
- The MLS® Home Price Index (HPI) Composite Benchmark fell 5.4% YoY.
- The average GTA selling price dropped 5.5% YoY to around $1,051,719.
- Word on the street indicates the HPI drifted slightly lower—about $979,000, down 0.2% from June.
What It Adds Up To: Buyers are back in force—sales are outpacing new listings while prices softened, creating renewed market opportunities.
City Highlights
Toronto
A more balanced landscape—but some segments remain soft. Condos and detached homes see inventory rising; semis are steadier.
Oakville, Mississauga, Burlington & Muskoka
While TRREB doesn’t break down by city in these reports, regional trends suggest:
- Mississauga & Burlington: Strong rise in listings and dipping average prices give buyers leverage.
- Oakville: Stability in demand for luxury keeps discounts modest.
- Muskoka: Continued strong interest in sub-$2M waterfront properties should benefit from broader GTA momentum.
What This Means for You
- For Buyers:
Renewed affordability, rising inventory, and favorable interest rates make August a prime time to move. - For Sellers:
A more balanced market—strategic pricing and quick response will be key to success. - For Investors & Cottage Buyers:
Strong July sales in the GTA point to increasing investor interest; Muskoka remains a high-value lifestyle and investment destination.
Work With the GTA Real Estate Experts
Whether you’re planning to buy a Muskoka cottage, invest in a luxurious Oakville property, or explore options across Toronto, Mississauga, or Burlington, now is the time to act.
Regan Irish & Associates specializes in luxury, resale, and investment properties across the GTA and Muskoka. Our market insight and negotiation skills help you get the best results—whether buying, selling, or investing.
1320 Cornwall Rd Unit 103, Oakville, ON L6J 7W5
905.842.7677
Visit reganirish.com
Let’s make today’s market your opportunity—contact us today!
Ultimate Guide to Downsizing Your Home in Canada
Alex Irish & Associates and The Regan Team Announce Strategic Merger
Two of the most respected names in real estate, Alex Irish & Associates and The Regan Team, are excited to announce a strategic merger that will combine their expertise, resources, and market reach. This partnership of Regan Irish & Associates brings together the strengths of both firms, offering an enhanced real estate experience for clients across Southern Ontario, including expanding into new regions like Collingwood and Muskoka. The merger reflects both brokerages’ long-standing commitment to providing high-quality, relationship-focused service while leveraging new technologies and business strategies to ensure their clients receive unparalleled support.
“Alex is the consummate professional,” said Matthew Regan, CEO of The Regan Team. “She embodies the qualities of a person I would trust with my own home sale, and I am excited to partner with her to combine the best of both our brokerages. Our goal is to create a work culture that allows our agents to thrive, while being confident and equipped to provide the service our clients deserve. Our clients are going to benefit immensely with a wider and deeper net of potential buyers and an even further reach in marketing and advertising.”
Alex Irish, Founder of Alex Irish & Associates, emphasized that this partnership is the next natural step for her business. “By combining our resources and efforts we knew we’d be able to create a better real estate experience for our clients, our agents and business partners.” she explained. “This merger allows me to focus more on client relationships while also mentoring our agents who can continue to offer that same high level of service. Matthew has built a business model that aligns with my long-term vision, allowing us to scale while still maintaining the personal touch. Simply put, we are better together.”
Alex has built her brand over decades, particularly in the Oakville area, where her name is synonymous with excellence in real estate. Her personal approach, based on referrals and repeat business, has earned her a loyal clientele. Matthew has focused on recruiting top agents and scaling his business, growing The Regan Team to one of the top brokerages in Canada. This merger offers an exciting opportunity to grow into new territories. Together, the merged brokerage will have 15 offices spanning from Niagara to Toronto to Muskoka. This expanded presence means more resources for clients, from enhanced marketing capabilities to a wider net of potential buyers.
The merger will officially take effect on October 31, 2024, and the new branding and operations will be rolled out in the coming months.
About Alex Irish & Associates
Alex Irish & Associates, led by Alex Irish, is a highly respected name in Oakville, known for its personalized, referral-based business model and long-standing relationships with clients. Alex has built her brand on trust, excellence, and attention to detail, qualities that will remain at the forefront of the merged firm.
About The Regan Team
The Regan Team has a long-standing reputation for innovation, process-driven operations, and a focus on agent recruitment and development to provide the highest level of service for their clients. Under Matthew’s leadership, the brokerage has expanded its presence across Ontario, providing agents with the tools and support needed to succeed in a competitive market. For more information on this exciting merger, please contact Matthew Regan.