Renters Still Not Feeling Relief, And Big Banks Mixed on Next Interest Rate Announcement

This week’s top real estate stories.

By Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week. 

Most of Toronto is on Sale

It’s one of the best times in history to haggle over a piece of Canada’s biggest city. That’s because homes are selling below their asking price in 93% of GTA neighbourhoods, according to our latest housing market report. That’s up from May, when 87% of neighbourhoods found themselves in underbidding territory, and an even more dramatic change from the 71% at the same time last year. At this pace, Toronto very well could break the record set in December of 2023 and tied in January of 2024, when 98% of neighbourhoods saw average home prices bid down.

Nobody is Happy about Canada’s Rental Market 

Asking rents continue to plummet, especially in Canada’s most expensive cities, but renters aren’t feeling the relief, while landlords continue to struggle. Despite nine consecutive months of asking rent declines, those discounts aren’t often enjoyed by existing tenants, while rent-to-income ratios remain out of balance for those entering the market, according to a new CMHC report. The lower asking prices are attributed to higher supply and declining immigration, which should keep prices on the decline moving forward. However, labour market challenges and internal migration will make affordability a persistent challenge for renters, and high vacancy rates a persistent challenge for landlords.

The Big Banks are as Confused as the Rest of Us 

Like the kid who put their videogame controller down for dinner, the Bank of Canada may not remember to hit unpause any time soon. That’s according to the economists at RBC and Scotiabank, who recently updated their 2025 economic forecasts to indicate they no longer expect further rate cuts this year. At the same time, however, BMO and Desjardins suggest the Bank will cut another 75 basis points by early 2026, bringing the overnight rate to 2%. These wildly different assessments of the country’s economic prospects are largely thanks to its wildly unpredictable southern neighbour.

Signs of Life, or Just Gas? 

Toronto’s dried-up housing market may have stumbled on a desert oasis, but time will tell if it’s a sign of salvation, or just a mirage. According to the Toronto Regional Real Estate Board, seasonally adjusted home sales were up 8.1% in June compared to May, the first sign of stability after a wobbly start to the year. At the same time, home sales were down 2.4% since last year, which isn’t great, but much better than the 13% annual decline in May. The agency says interest rate cuts and a trade deal would improve sales, if they ever materialize. 

Parents Trading Chunks of their Homes for Their Kids

For some, the skyrocketing number of Canadians needing family gifts to enter the housing market is a calamity. For others, it’s an opportunity. According to CMHC, 41% of first-time buyers used a gift to cover their mortgage costs in 2025, up from 30% the year before. Now, HomeEquity Bank is offering a product to make gifting easier. Their new Custom Solutions platform lets homeowners use CHIP Reverse Mortgages to make a “living legacy” transfer, funding their kids’ purchases with their equity. The company says the idea came after a 15.5% annual increase in customers using home equity funds for gifting.

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