A Martin Group Market Analysis (September 2025 Data Release)
The latest Housing Price Index (HPI) and absorption data for September 2025 confirms that the Oakville real estate market is currently offering significant opportunity. We are firmly in a Buyer’s Market, characterized by substantial price corrections compared to last year's peaks and favorable negotiation leverage for buyers.
However, the most important development is the macroeconomic pivot: the Bank of Canada’s recent interest rate cut has already triggered immediate market reactions, suggesting the window of maximum buyer advantage is beginning to close.
Here is a breakdown of the key statistics and our strategic advice for navigating the Oakville market in Q4 2025.
1. The Big Picture: A Deep Buyer’s Market (10.9% – 16.3% Absorption)
The absorption rate (the ratio of sales to new listings) is the clearest indicator of market balance. A rate below 30% signals a buyer’s market, meaning there is excess inventory and low competition. Oakville is currently in a deep buyer’s territory across all segments:
Property Type |
YoY Change (Sept 2024 - Sept 2025) |
MoM Change (Aug 2025 - Sept 2025) |
Absorption Rate |
Market Classification |
1-Storey Detached |
-5.8% |
-2.7% |
13.0% |
Deep Buyer's Market |
2-Storey Detached |
-5.0% |
-1.0% |
13.0% |
Deep Buyer's Market |
Townhomes |
-8.5% |
+3.7% |
16.3% |
Buyer's Market (Stabilizing) |
Apartments |
-12.1% |
-3.5% |
10.9% |
Strong Buyer's Market |
Key takeaway for all clients: With absorption rates between 10.9% and 16.3%, properties are taking longer to sell, granting buyers excellent leverage on price, conditions, and closing flexibility.
2. The Macroeconomic Tailwind: The BoC Rate Cut
The primary factor changing the sentiment in the Oakville market is the Bank of Canada’s decision on September 17, 2025, to cut its target overnight rate to 2.50%.
Why this matters now:
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Affordability Boost: The rate cut immediately lowered variable mortgage rates, translating directly into enhanced purchasing power and lower monthly payments for buyers.
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The Townhome Indicator: The most telling sign of the cut’s impact is the +3.7% MoM HPI increase in the Townhome segment. As the most affordability-sensitive category, this surge suggests that pent-up demand was immediately activated by the lower borrowing costs. This indicates that the deepest price declines in the mid-market may be concluding.
3. Segment-Specific Performance
Apartments (Condos): Deepest Correction, Greatest Leverage
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Performance: Apartments saw the steepest annual drop at -12.1% YoY and continued to soften -3.5% MoM.
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Strategy: With the lowest absorption rate at 10.9%, this segment offers the maximum negotiation leverage for first-time buyers and investors seeking a strategic entry point into the Oakville market.
Townhomes: Stabilization is Underway
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Performance: Down -8.5% YoY, but the +3.7% MoM jump is critical.
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Strategy: Buyers in this segment must act decisively. The monthly price rebound suggests that the maximum leverage period is rapidly diminishing as pent-up demand is activated by the rate cut. Competition is likely to return here first.
Detached Homes (1-Storey and 2-Storey): Resilience and Opportunity
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Performance: These segments showed the greatest HPI resilience (-5.0% to -5.8% YoY), reflecting high long-term demand for Oakville’s family housing stock.
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Strategy: Sellers must acknowledge the low 13.0% absorption rate; despite the perceived value of their homes, they must price competitively from day one to avoid prolonged time-on-market. Buyers should view the low absorption rate as a temporary gift: an opportunity to secure a high-value asset without the bidding wars seen in previous years.
Strategic Advice for Martin Group Clients
For Sellers: Price Realistically, Present Impeccably
The current environment demands a proactive and realistic approach.
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Mandate Realistic Pricing: In a 10%-16% absorption market, overpricing is fatal. Listings that sit for more than 30 days lose negotiating power. Price your home competitively based on the current HPI correction to secure a fast sale and maintain control.
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Focus on Presentation: With high inventory, buyers are highly selective. Professional staging, high-quality photography, and meticulous presentation are non-negotiable tools to ensure your home stands out and justifies its price.
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Offer Flexibility: Be open to reasonable conditions and flexible closing dates, as this can be the decisive factor for a buyer comparing your home to a similar listing.
For Buyers: Act Decisively to Maximize Leverage
Your current advantage: corrected prices combined with improving affordability is finite.
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Secure Your Financing Now: Act fast to lock in your pre-approval reflecting the improved borrowing costs following the BoC's cut.
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Target High-Leverage Segments: Maximize your savings by focusing on segments with the lowest absorption (Apartments at 10.9%) and the steepest corrections.
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Don’t Wait for a "Crash": The primary market correction has already occurred (up to -12.1% YoY). Waiting for a speculative, massive drop risks missing the bottom and entering a rapidly tightening market as continued rate cuts pull more competition back in.
Outlook: We anticipate that as interest rate moderation continues, the Oakville market will shift from correction toward stabilization. Most analysts predict moderate aggregate price growth in 2026, likely in the 3% to 6% range, fueled by immigration and chronic housing supply shortages. For buyers, the time to secure maximum leverage is now; for sellers, realistic pricing is the shortest path to a successful transaction.