The Bank of Canada just lowered its key interest rate to 2.75% to help support the economy.

At the start of 2025, Canada’s economy was doing well, with steady growth and inflation close to the 2% target. But new trade tensions and tariffs from the U.S. are expected to slow things down and push prices higher. There’s a lot of uncertainty about what’s coming next.

The U.S. economy has recently slowed, while inflation there is still a bit high. Europe had some small growth at the end of 2024, and China’s economy is doing well due to government support. Meanwhile, stock markets have dropped, bond yields have fallen, and oil prices have been unpredictable. The Canadian dollar has stayed about the same compared to the U.S. dollar but has lost value against other currencies.

Canada’s economy grew by 2.6% in the last part of 2024, better than expected. Lower interest rates helped people spend more, especially on homes. But in early 2025, growth is expected to slow because businesses and consumers are becoming more cautious. Many companies are putting investment plans on hold, and people are feeling less confident about spending. However, exports increased as businesses rushed to sell goods before new tariffs hit.

Jobs were growing at the end of 2024, and unemployment dropped to 6.6%. But in February, job growth stalled. While lower interest rates have helped create jobs, trade issues could cause problems in the job market. Wages are also rising more slowly.

Inflation is close to the Bank of Canada’s 2% target. A temporary tax break made some things cheaper, but prices went up slightly in January. In March, inflation is expected to rise to around 2.5% as the tax break ends, with housing costs still a big factor. Short-term inflation expectations have increased because of tariff concerns.

Even though the economy has been stronger than expected, ongoing trade uncertainty is making people and businesses hold back on spending and investing. With inflation under control, the Bank of Canada decided to lower interest rates by 0.25% to keep the economy stable. While they can’t stop the effects of a trade war, they can help keep inflation in check. The Bank will keep a close watch on inflation and economic trends to make sure things stay on track.

The next interest rate update is scheduled for April 16, 2025.

Have questions or simply want to chat? Call me anytime 705-440-9346

Toronto's rental market has experienced a notable decline in prices over the past year, offering potential relief to renters in the city. Here's an overview of the recent trends:

Average Rent Decrease

As of December 2024, the average monthly asking rent for apartments in Toronto decreased to $2,632, marking a 7.1% drop compared to the previous year. This decline is significant, especially considering the consistent rent increases observed in the preceding years.

One-Bedroom and Two-Bedroom Units

In December 2024, the average rent for a one-bedroom apartment was approximately $2,372, reflecting a 6.5% decrease from 2023. Two-bedroom apartments saw a 7.4% reduction, with average rents around $3,098.

Monthly Trends

The downward trend in rental prices has been consistent over several months. For instance, in November 2024, the average asking rent dropped to $2,640, a 9.4% decrease compared to November 2023.

torontotoday.ca

Factors Influencing the Decline

Several factors have contributed to this decrease in rental prices:

• Increased Supply: There has been a significant increase in the number of condo apartments listed for rent. In the third quarter of 2024, condo rental listings rose by 46.6% compared to the same period in 2023, providing more options for renters and contributing to the dip in average rents.

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• Economic Conditions: The Bank of Canada's monetary policies, including interest rate cuts, have influenced the housing market dynamics, indirectly affecting rental prices.

  Conclusion

The recent decline in Toronto's rental prices indicates a shift towards a more balanced market, offering renters increased affordability and options. However, it's essential to monitor these trends continually, as economic and housing market conditions can change over time.

If you want more information or simply want to chat about this topic! Call me 705440-9346. Always here to help!

Imagine your neighbour 3 doors down is the exact same size home and layout as yours, but is fully renovated and sold for I.3M last week…

Imagine your home is in complete original condition from the 1980s, and your hoping to get $950,000 for it…

Now imagine your realtor calls you to tell you that there is 19 offers on your home and the top offer is $1,390,000 with no conditions (the same week that your neighbour fully renovated just got $1,300,000).

That was the feeling of our clients last week!!!

223 Rebecca S 47, Oakville 

4 Bed 

4 Bath 

2 parking

Townhouse 47 in Oakville is a fabulous bright bungaloft located in the exclusive Barclay Square, a small community of just 48 homes. Nestled in a trendy and vibrant neighbourhood within walking distance to the lake, coffee shops, schools, and more, this home offers three spacious bedrooms and three-and-a-half bathrooms. The open-concept living area is filled with natural light and provides a cozy and functional space. Enjoy a maintenance-free lifestyle, with condo fees covering lawn and exterior maintenance, providing peace of mind when you're away. Step outside to enjoy a tranquil, private yard - perfect for relaxation or entertaining. A commuter's dream, this residence is just 2 minutes from the QEW, 5 minutes to the GO station, and 20 minutes from the international airport. Townhouse 47 combines space, convenience, and serene outdoor living in one of Oakville's most desirable locations.

What was the difference between what we did and the house down the street? Our Staging, photos and marketing are unmatched!

Maddison Dombroski 

RARE Real Estate 

7054409346

maddison.dombroski@gmail.com

Welcome to our Real Estate Blog! Here you can find timely updates of my latest properties, open houses, just solds and much more.

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