April 29th, 2025 Mortgage Industry Update
The Bank of Canada announced on April 16th that its overnight rate will hold at 2.75%. Marks the first pause after seven consecutive rate cuts. The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty and diminished prospects for economic growth. The prime rate remains 4.95%.
Additionally this week:
– Overall foreign investment in US real estate has dropped significantly, with total international purchases falling to $42 billion, a 21% decline from the previous year. The total number of homes purchased by foreign buyers declined 37%, down to 54,000 transactions.
– According to recent research by Bullpen Research & Consulting, the average asking price per square foot for new, unsold condos in Toronto fell to $1,524 in Q4 2024, representing a 10% decline from the three-year peak of $1,689 reached in Q3 2022.
– Urbanation: Q1 new condo sales in the GTHA totalled only 533. Marks 62% annually drop and 88% below the 10-year average. Lowest quarterly total since 1995. The average selling price for new condos in Q1 came in at $1,151 per square foot, down 7 per cent year-over-year.
– CREA: Single-family home prices in Ontario fell in March for the second month in a row after about a year and a half of relative stability. Fell yearly from $951,900 to $907,300, a 4.7% fall. Condo prices were down 5.3% in the same period, and townhouses were down 2.2%.
– RPS-Wahi home price index: Vancouver and Toronto threw a wet blanket on growth in national home prices in March. Prices increased in 11 out of 13 cities last month compared annually. Prices grew 3% across the nation, but prices dipped 1% in Vancouver and remained flat in Toronto.
– CREA: Home sales in March fell 4.8% monthly. Expecting total of 482,673 residential properties to be sold throughout year, unchanged from 2024, but marking steep cut from previous January forecast of 8.6% annual increase. National average home price forecast to decrease 0.3%.
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.
