Nearly 80% of people won’t buy a home in Ontario even with interest rate cuts: poll

Home prices have dropped in the Greater Toronto Area, but even with an interest rate cut, many people aren’t considering buying right now.

Home prices are down across the Greater Toronto Area. The composite benchmark dipped by five per cent year-over-year in October 2025. The average selling price, at $1,054,372, was also down by 7.2 per cent compared to October 2024, according to the latest Toronto Regional Real Estate Board report.

Compared to the peak of pandemic pricing in the spring of 2022, national home prices have come down by approximately five per cent, Royal LePage said in a recent market report.

Borrowing costs are also down. The Bank of Canada lowered its benchmark interest rate to 2.25 per cent with a second consecutive cut on Oct. 29.

But the majority of people who responded to an INsauga.com poll won’t buy a home anytime soon.

INsauga.com asked: “Will you consider buying a home now that the key interest rate is lower?”

As of Nov. 14, a total of 1,909 (77.19 per cent) said no, and 564 (22.81 per cent) said yes.

Another rate cut could come in the new year. BMO senior economist Robert Kavcic said that another (quarter-point cut) is still on the table for early 2026.

Real estate experts blame economic conditions and tariff threats on housing price declines.

Stronger buying activity is expected by the spring, Phil Soper, president and CEO, Royal LePage said in the Royal LePage House Price Survey and Market Forecast released in October.

“Buyer sentiment is being influenced by a complex mix of economic and psychological factors,” Soper said. “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. It’s understandable that some are waiting before making such a significant purchase.”

Lead photo: Tierra Mallorca