August 6, 2025 • 8 mins
In this episode, the conversation starts with a welcome and introduction, followed by a sponsor message from Real Approved Inc. The discussion shifts to an update on the Toronto housing market, focusing on sales increases and price dynamics. The impact of the Bank of Canada's interest rate decisions is explored, along with a comparison of home sales trends between Toronto and Metro Vancouver. The Toronto condo market is analyzed, highlighting a price decline and an increase in inventory. Buyer preferences and property type sales trends are also discussed. The episode concludes with insights into Canadian provincial bonds and the economic outlook, followed by closing remarks and a sponsor message.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome to the Ontario Mortgage & Real EstateInsights Podcast, your go-to source for the
(00:04):
latest developments, trends, and regulatorychanges in the industry.
I'm your host, Steve Hamoen, here to provideyou with insights sourced from reputable news
outlets to help you stay informed and makewell-informed decisions.
This podcast is brought to you by Real ApprovedInc., a trusted mortgage brokerage dedicated to
(00:26):
helping Canadians achieve their homeownershipdreams.
Visit realapproved.ca to learn more about howour experienced team can assist you with your
mortgage needs.
Let's dive into today's episode.
Our first topic today is the recent increase inToronto home sales in July, which rose by
thirteen percent over June.
(00:48):
This is according to the Toronto Regional RealEstate Board, and it's quite a significant
jump, marking the largest month-over-monthincrease so far in 2025.
That's right, Steve.
It's encouraging to see more people findingopportunities to purchase homes, especially as
affordability improves.
The fact that the home price index dropped byzero point two percent from June to July is a
(01:11):
sign that prices are continuing to decline,which may be providing some relief to potential
buyers.
Absolutely, Janine.
The home price index is down five point fourpercent from July 2024, and the average selling
price across the Greater Toronto Area hasdecreased from one point thirteen million
dollars last July to one point zero fivemillion dollars this past month.
(01:34):
This decline in prices seems to be makinghomeownership more accessible.
Yes, and as Elechia Barry-Sproule, the TorontoRegional Real Estate Board president,
mentioned, this improved affordability istranslating into increased home sales.
However, she did note that more relief isneeded, particularly when it comes to borrowing
(01:54):
costs.
And that's a crucial point, Janine.
The Bank of Canada recently held its policyinterest rate at two point seventy-five percent
for the third consecutive time, which isn'tproviding much relief for homeowners facing
mortgage-rate renewals.
Yet, the real estate board's chief informationofficer, Jason Mercer, pointed out that
(02:16):
interest-rate cuts could spur even more homesales and boost the economy.
It's a delicate balance, isn't it, Steve?
While lower interest rates could stimulate themarket further, they also have to be managed
carefully to ensure long-term economicstability.
Meanwhile, in Metro Vancouver, home sales fellby two percent in July compared to last year,
(02:38):
showing that different regions are experiencingvaried trends.
That's a great observation, Janine.
With about seventeen thousand homes on themarket in Metro Vancouver, buyers there have
plenty of options, as noted by Andrew Lis, theGreater Vancouver Realtors director of
economics and data analytics.
It's interesting to see how market dynamicsdiffer across regions.
(03:01):
Let's turn our attention to the condo market inthe Toronto area.
The average condo price has fallen to sixhundred fifty-one thousand dollars, marking the
lowest level in more than four years.
This is quite significant given the context ofthe larger real estate market.
Steve, this drop in condo prices could be seenas a double-edged sword.
(03:22):
On one hand, it makes condos more accessiblefor first-time buyers who were previously
priced out.
But, on the other hand, it reflects a marketwhere supply is outpacing demand, especially in
the condo segment.
That's a valid point, Janine.
The Toronto Regional Real Estate Board reporteda nine point three percent decline in condo
(03:45):
prices year-over-year.
While this might be a relief for buyers, itraises questions about market stability and the
future of condo investments.
Indeed, Steve.
Jason Mercer from the Toronto Regional RealEstate Board noted that the condo market has
seen a real growth in inventory.
This is primarily because many investors havepulled back due to their inability to cover
(04:08):
mortgage costs, which is leading to anoversupply of smaller units.
And let's not forget the impact of interestrates.
With rates having been lower over the pastyear, there's been some improvement in
affordability.
However, the demand has shifted towards largerunits, leaving studio and one-bedroom condos
less attractive.
(04:29):
That's right, Steve.
Many first-time buyers are looking for morespace, especially after experiencing the
pandemic.
The desire for larger living areas has become apriority, which is influencing the types of
properties that are in demand.
It's also worth noting that while prices aredropping, sales have increased across all
property types year-over-year.
(04:50):
Semi-detached homes, for example, saw a surgeof twenty-five point five percent in sales.
So, while prices are lower, the activity in themarket is picking up.
Yes, and with the total number of listings upby twenty-six percent year-over-year, buyers
have more options to negotiate.
But, as Jason Mercer mentioned, for prices tostabilize or rise, sales growth needs to
(05:14):
outstrip new listings consistently over severalmonths.
Exactly, Janine.
The dynamics are complex, and while moreaffordable borrowing costs are helping some
buyers, the market still needs to see a balancebetween supply and demand to create upward
pressure on pricing.
It will be interesting to see how the Bank ofCanada's interest rate decisions in the coming
(05:36):
months affect this balance.
Absolutely.
The current landscape is providingopportunities for some while remaining
challenging for others.
It's a time of transition, and we'll continueto monitor these changes closely to provide our
listeners with the latest insights.
Our final topic for today revolves aroundCanadian provincial bonds, which have been
(05:58):
holding steady as the country's growth outlookshows signs of improvement.
According to a recent review from the Bank ofMontreal, Canadian economic data is holding up
quite well, despite some short-term losses whengovernment bond yields rose.
That's interesting, Steve.
It's always encouraging to see stability in thebond market, especially when it's paired with a
(06:19):
gradually improving economy.
The demand for provincial debt has remainedhigh, which seems to be a sign of investor
confidence.
Even though market returns lagged in July, bondspreads are at multi-year lows, which is quite
promising.
Absolutely, Janine.
Long-dated provincial bonds have managed tooutperform over the past six and twelve months.
(06:44):
It's important to note that the Bank of Canadaopted to keep rates steady last month as core
inflation stayed sticky.
This decision might not provide immediaterelief, but there's potential for modest easing
in the future if more slack appears in theeconomy.
And with the GDP set to grow by one point threepercent in 2025 and one point four percent in
(07:05):
2026, the outlook looks sturdier.
Although it's not a massive surge, it's apositive direction.
It's good news for those looking for dependableand resilient debt options, especially when
global uncertainty is running high.
Indeed, Janine.
Institutional investors have kept their faithin Canadian provincial bonds, with spreads
(07:28):
still hovering close to historic lows.
This stability reinforces why provinces havebecome a cornerstone for those seeking solid,
reliable gains amid rate uncertainty.
The focus now will be on whether the Bank ofCanada's cautious hold will shift to actual
rate cuts, which could give bond prices anotherboost before year's end.
(07:49):
It's a defensive balance as growth recovers,Steve.
Provincial governments seem to be in bettershape than many predicted earlier this year,
with less budget risk and greater stability.
This strengthens Canada’s reputation as one ofthe world’s most secure bond markets, providing
a safe haven for global investors.
Well, that's a wrap for today's episode.
(08:11):
Thanks for tuning in to another episode of theOntario Mortgage & Real Estate Insights
Podcast.
We hope you found today's insights valuable asyou navigate the world of mortgages and real
estate.
Before you go, a quick reminder (08:22):
Real Approved is here to make your mortgage journey smoother.
Whether you're buying your first home orrefinancing, their experienced team is ready to
guide you with personalized support every stepof the way.
Visit realapproved.ca to get started and takethe next step toward achieving your
(08:43):
homeownership goals.
Catch you next time, and stay informed with thelatest industry insights!
Welcome to the Ontario Mortgage & Real EstateInsights Podcast, your go-to source for the
(00:04):
latest developments, trends, and regulatorychanges in the industry.
I'm your host, Steve Hamoen, here to provideyou with insights sourced from reputable news
outlets to help you stay informed and makewell-informed decisions.
This podcast is brought to you by Real ApprovedInc., a trusted mortgage brokerage dedicated to
(00:26):
helping Canadians achieve their homeownershipdreams.
Visit realapproved.ca to learn more about howour experienced team can assist you with your
mortgage needs.
Let's dive into today's episode.
Our first topic today is the recent increase inToronto home sales in July, which rose by
thirteen percent over June.
(00:48):
This is according to the Toronto Regional RealEstate Board, and it's quite a significant
jump, marking the largest month-over-monthincrease so far in 2025.
That's right, Steve.
It's encouraging to see more people findingopportunities to purchase homes, especially as
affordability improves.
The fact that the home price index dropped byzero point two percent from June to July is a
(01:11):
sign that prices are continuing to decline,which may be providing some relief to potential
buyers.
Absolutely, Janine.
The home price index is down five point fourpercent from July 2024, and the average selling
price across the Greater Toronto Area hasdecreased from one point thirteen million
dollars last July to one point zero fivemillion dollars this past month.
(01:34):
This decline in prices seems to be makinghomeownership more accessible.
Yes, and as Elechia Barry-Sproule, the TorontoRegional Real Estate Board president,
mentioned, this improved affordability istranslating into increased home sales.
However, she did note that more relief isneeded, particularly when it comes to borrowing
(01:54):
costs.
And that's a crucial point, Janine.
The Bank of Canada recently held its policyinterest rate at two point seventy-five percent
for the third consecutive time, which isn'tproviding much relief for homeowners facing
mortgage-rate renewals.
Yet, the real estate board's chief informationofficer, Jason Mercer, pointed out that
(02:16):
interest-rate cuts could spur even more homesales and boost the economy.
It's a delicate balance, isn't it, Steve?
While lower interest rates could stimulate themarket further, they also have to be managed
carefully to ensure long-term economicstability.
Meanwhile, in Metro Vancouver, home sales fellby two percent in July compared to last year,
(02:38):
showing that different regions are experiencingvaried trends.
That's a great observation, Janine.
With about seventeen thousand homes on themarket in Metro Vancouver, buyers there have
plenty of options, as noted by Andrew Lis, theGreater Vancouver Realtors director of
economics and data analytics.
It's interesting to see how market dynamicsdiffer across regions.
(03:01):
Let's turn our attention to the condo market inthe Toronto area.
The average condo price has fallen to sixhundred fifty-one thousand dollars, marking the
lowest level in more than four years.
This is quite significant given the context ofthe larger real estate market.
Steve, this drop in condo prices could be seenas a double-edged sword.
(03:22):
On one hand, it makes condos more accessiblefor first-time buyers who were previously
priced out.
But, on the other hand, it reflects a marketwhere supply is outpacing demand, especially in
the condo segment.
That's a valid point, Janine.
The Toronto Regional Real Estate Board reporteda nine point three percent decline in condo
(03:45):
prices year-over-year.
While this might be a relief for buyers, itraises questions about market stability and the
future of condo investments.
Indeed, Steve.
Jason Mercer from the Toronto Regional RealEstate Board noted that the condo market has
seen a real growth in inventory.
This is primarily because many investors havepulled back due to their inability to cover
(04:08):
mortgage costs, which is leading to anoversupply of smaller units.
And let's not forget the impact of interestrates.
With rates having been lower over the pastyear, there's been some improvement in
affordability.
However, the demand has shifted towards largerunits, leaving studio and one-bedroom condos
less attractive.
(04:29):
That's right, Steve.
Many first-time buyers are looking for morespace, especially after experiencing the
pandemic.
The desire for larger living areas has become apriority, which is influencing the types of
properties that are in demand.
It's also worth noting that while prices aredropping, sales have increased across all
property types year-over-year.
(04:50):
Semi-detached homes, for example, saw a surgeof twenty-five point five percent in sales.
So, while prices are lower, the activity in themarket is picking up.
Yes, and with the total number of listings upby twenty-six percent year-over-year, buyers
have more options to negotiate.
But, as Jason Mercer mentioned, for prices tostabilize or rise, sales growth needs to
(05:14):
outstrip new listings consistently over severalmonths.
Exactly, Janine.
The dynamics are complex, and while moreaffordable borrowing costs are helping some
buyers, the market still needs to see a balancebetween supply and demand to create upward
pressure on pricing.
It will be interesting to see how the Bank ofCanada's interest rate decisions in the coming
(05:36):
months affect this balance.
Absolutely.
The current landscape is providingopportunities for some while remaining
challenging for others.
It's a time of transition, and we'll continueto monitor these changes closely to provide our
listeners with the latest insights.
Our final topic for today revolves aroundCanadian provincial bonds, which have been
(05:58):
holding steady as the country's growth outlookshows signs of improvement.
According to a recent review from the Bank ofMontreal, Canadian economic data is holding up
quite well, despite some short-term losses whengovernment bond yields rose.
That's interesting, Steve.
It's always encouraging to see stability in thebond market, especially when it's paired with a
(06:19):
gradually improving economy.
The demand for provincial debt has remainedhigh, which seems to be a sign of investor
confidence.
Even though market returns lagged in July, bondspreads are at multi-year lows, which is quite
promising.
Absolutely, Janine.
Long-dated provincial bonds have managed tooutperform over the past six and twelve months.
(06:44):
It's important to note that the Bank of Canadaopted to keep rates steady last month as core
inflation stayed sticky.
This decision might not provide immediaterelief, but there's potential for modest easing
in the future if more slack appears in theeconomy.
And with the GDP set to grow by one point threepercent in 2025 and one point four percent in
(07:05):
2026, the outlook looks sturdier.
Although it's not a massive surge, it's apositive direction.
It's good news for those looking for dependableand resilient debt options, especially when
global uncertainty is running high.
Indeed, Janine.
Institutional investors have kept their faithin Canadian provincial bonds, with spreads
(07:28):
still hovering close to historic lows.
This stability reinforces why provinces havebecome a cornerstone for those seeking solid,
reliable gains amid rate uncertainty.
The focus now will be on whether the Bank ofCanada's cautious hold will shift to actual
rate cuts, which could give bond prices anotherboost before year's end.
(07:49):
It's a defensive balance as growth recovers,Steve.
Provincial governments seem to be in bettershape than many predicted earlier this year,
with less budget risk and greater stability.
This strengthens Canada’s reputation as one ofthe world’s most secure bond markets, providing
a safe haven for global investors.
Well, that's a wrap for today's episode.
(08:11):
Thanks for tuning in to another episode of theOntario Mortgage & Real Estate Insights
Podcast.
We hope you found today's insights valuable asyou navigate the world of mortgages and real
estate.
Before you go, a quick reminder (08:22):
Real Approved is here to make your mortgage journey smoother.
Whether you're buying your first home orrefinancing, their experienced team is ready to
guide you with personalized support every stepof the way.
Visit realapproved.ca to get started and takethe next step toward achieving your
(08:43):
homeownership goals.
Catch you next time, and stay informed with thelatest industry insights!
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