Inflation Slows, Buyer Confidence Grows
As we step into May, Canada’s economic and housing outlook is undergoing a meaningful shift. From declining inflation to evolving buyer behavior, the landscape is changing—offering fresh opportunities for homeowners, investors, and first-time buyers alike.
With interest rates holding steady and signs pointing toward potential cuts later this year, many are watching closely for the right moment to make their move. Here’s what you need to know this month:
Inflation Is Cooling
Canada’s inflation rate eased to 2.3% in March, and early projections suggest it dropped even further—to around 1.5%—in April. Lower gas prices and the rollback of the consumer carbon tax have contributed to this trend. As we inch closer to the Bank of Canada’s 2% target, households and businesses alike may feel some financial relief.
Bank of Canada Holds Rates (For Now)
In April, the Bank of Canada held its benchmark interest rate at 2.75%. While this signals stability for now, markets are still anticipating two 0.25% cuts by year-end—potentially more if economic pressures increase. Lower borrowing costs could stimulate both the housing market and overall consumer activity.
Regional Housing Outlook: A Mixed Bag
Not all regions are experiencing the market in the same way:
Optimistic: Atlantic Canada and Quebec are seeing the highest expectations for home price growth over the next year.
Cautious: British Columbia and Manitoba are seeing softer sentiment, with more modest projections.
Understanding your local market remains key to making smart real estate decisions.
A Buyer’s Market Is Emerging
The national sales-to-new listings ratio dropped to just 45% in March, marking a shift toward a buyer’s market. That means more selection, more room to negotiate, and a more favorable environment for those looking to purchase a home in 2025.
Demand Waiting in the Wings
Despite lower sales per capita, demographic drivers—like population growth and immigration—suggest pent-up demand is building. As interest rates drop and affordability improves, this demand may begin to surface, injecting fresh momentum into the market.
What This Means for You
As we head further into Q2, now is the time to reassess your goals and financing strategies. Whether you’re considering a move, looking to refinance, or exploring investment opportunities, understanding these trends can help you stay ahead of the curve.
Need guidance navigating the market? Our team at Cashin Mortgages is here to help.
With interest rates holding steady and signs pointing toward potential cuts later this year, many are watching closely for the right moment to make their move. Here’s what you need to know this month:
