Despite falling home prices and declining borrowing costs, a new poll suggests that most Ontarians still have no plans to enter the housing market anytime soon.
Home prices across the Greater Toronto Area have continued to soften. According to the latest Toronto Regional Real Estate Board report, the composite benchmark price dropped 5% year-over-year in October 2025, while the average selling price fell 7.2% to $1,054,372.
Nationally, prices are also down approximately 5% from the pandemic peak in spring 2022, Royal LePage noted in its latest market update.
Interest Rates Down — But Buyers Still Hesitant
The Bank of Canada lowered its benchmark interest rate to 2.25% on October 29, marking the second consecutive cut.
Even with reduced borrowing costs, a large majority of residents surveyed remain unwilling to buy a home.
An inSauga.com poll asked:
“Will you consider buying a home now that the key interest rate is lower?”
Out of 1,909 respondents,
- 77.19% (1,917 people) said No
- 22.81% (565 people) said Yes
Why Buyers Are Holding Back
Economists suggest that more rate cuts could arrive early in 2026. BMO senior economist Robert Kavcic said a quarter-point cut is still possible for the new year.
However, housing experts point to broader economic uncertainty as a major factor behind continued buyer caution.
Royal LePage CEO Phil Soper said consumer sentiment is being shaped by a “complex mix of economic and psychological factors.”
“Despite materially improved affordability in major cities, many Canadians – particularly younger ones – remain cautious amid high post-pandemic living costs, perceived job uncertainty, and general unease about our economic prospects,”
— Phil Soper, Royal LePage
He added that while affordability has improved, it’s understandable that some buyers are choosing to wait before making “such a significant purchase.”
Market Outlook: Stronger Activity Expected by Spring
Soper said stronger activity is likely by spring 2026 as confidence gradually returns to the market. But for now, many potential buyers remain on the sidelines — even as prices and interest rates trend downward.