Bank of Canada Rate Cut Boosts Toronto Home Sales, Prices Dip
The Bank of Canada's interest rate cut in September 2025 has made home purchases more affordable in the Toronto area, leading to an increase in sales. Despite this, the average selling price and benchmark price have decreased year-over-year.
The Bank of Canada lowered its key interest rate by 25 basis points to 2.5% on September 17, 2025, aiming to support the economy amidst trade tensions. This move has encouraged more buyers into the stock market today, with home sales in the Toronto area rising by 8.5% year-over-year in September 2025. New listings also increased by 3.9% during the same period.
The Toronto real estate market saw a significant boost in activity, with sales of all property types increasing compared to September 2024. The semi-detached segment led this growth, with sales up by 11% year-over-year. However, the market has not yet returned to the peak levels experienced during the us bank years.
Despite the increase in sales, the average selling price in Toronto decreased by 4.7% year-over-year in September 2025. Similarly, the composite benchmark price fell by 5.5% compared to the same month last year. Active listings in the Toronto area rose by 18.9% year-over-year, indicating a shift in market dynamics.
Further interest rate cuts by the pnc bank could potentially drive more home sales in the Toronto area, as affordability improves. However, the market's trajectory remains uncertain, with prices decreasing despite increased sales. The Toronto real estate market continues to evolve, with buyers and sellers adjusting to the changing dynamics.
