April 8th, 2025 Mortgage Industry Update
The Bank of Canada announced on March 12th that its overnight rate will be cut from 2.75% to 3.00%! Marks the seventh consecutive rate cut from the bank. Heightened trade tensions will likely slow pace of economic activity and increase inflationary pressures in Canada. The prime rate decreases to 4.95%.
Additionally this week:
– TRREB: GTA home sales dropped by 23.1% in March. 5,011 homes were sold in March, down from 6,519 a year earlier. New listings surged to 17,263, marking a 28.6% increase compared with last year. Average selling price in March fell by 2.5% from the previous year to $1,093,254.
– CBRE Group Inc: Vacancy rate for Canada’s downtown office buildings fell for the first time in five years. Nationally, vacancies in central business districts inched down to 19.9% in Q1 2025 from 20% in the previous three months. Marks first decline since Q1 2020.
– Canadian Bankers Association: Mortgage arrears are rising at the fastest pace in years. National mortgage arrears rate hit 0.22% in January, up 0.04% from the previous reading and marking the highest level since March 2021. Represents 57% increase from record low set in mid-2022.
– Conservative Party Leader Pierre Poilievre is promising to scrap capital gains taxes if the proceeds from an asset sale are reinvested in Canada. Companies would be able to defer any capital gains tax when they reinvest the money in active Canadian businesses.
– BILD: GTA new home market posted its worst February on record, with nearly 17,000 new and pre-construction condo units left unsold as sales plunged amid growing uncertainty. Only 400 new homes, including 152 condo units and 248 single-family homes, were sold. A 50% drop annually.
– RE/MAX Canada’s 2025 Spotlight on Luxury Report: Luxury real estate market experienced strong start in early 2025, with sales increasing in 75% major markets. Examined luxury real estate trends in 12 major markets – found that smaller luxury markets saw significant sales growth.
Stay tuned for the next update!
For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.
