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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:

– CMHC: Gifts are becoming a more important part of purchasing. Over 2 in 5 (41%) first-time buyers used gifted money for a down payment—up from 2023 (33%), and a big change from 2018 (14%).

– Teranet–National Bank House Price Index: Canada’s housing market continued to soften in April, with home prices declining for 4th consecutive month. National composite index dropped 1.5% monthly. Condo values have declined 2.7% since December, single-family homes down 2.1%.

– Statistics Canada: National inflation rate slid to 1.7% in April. Inflation cooled last month from 2.3% in March, although that drop was almost entirely because of the end of the consumer carbon price at the beginning of April.

– TRREB: Bachelor and one bedroom units in the Toronto area made up 20 per cent of condo sales in the last quarter of 2024. Bigger units, such as one bedroom plus den, two bedrooms and two bedrooms plus den, collectively made up 72 per cent of sales.

– CREA: Sales across Canada’s housing market continued to tumble in April, sliding by 9.8% annually, from 49,135 to 44,300. Remained largely flat compared with March, ticking 0.1% lower. MLS Home Price Index fell on both monthly (1.2%) and yearly (3.6%) basis. Listings up 14.3%.

– Re/Max Canada’s 2025 Cabin and Cottage Trends report: Families are now surpassing retirees as the primary buyers of recreational properties. Leading activity in 83% of surveyed regions, compared to retirees at 70%. In 2018 retirees were the dominant force in 91% of markets.

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.