Like most businesses, real estate is not immune to the Economic turmoil we face. But as Winston Churchill said, “The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty.”
Even with this uncertainty, employment figures in Canada remained almost static in February, adding just 1,100 jobs. The unemployment rate held steady at 6.6%. Inflation nudged slightly higher, increasing to 1.9% in January, primarily due to rising gasoline and natural gas prices. February’s inflation numbers are expected soon.
The Bank of Canada recently lowered interest rates by 25 basis points in its 7th consecutive cut, bringing the policy rate to 2.75%. BMO economists predict this downward trend could continue, potentially reaching as low as 2% by July 2025. Lower interest rates are poised to rejuvenate the real estate market by enhancing affordability for homebuyers.
The world is always changing, but timeless real estate advice remains the same. Learn more about how to experience a successful purchase or sale of your home in the posts below:
- Home Buying Myths Busted: What Really Saves You Money
- Real Estate 101 for First-Time Buyers
- When Is The Best Time To Sell A House?
Then Came the Trade War
The ongoing tensions with the U.S. over tariffs—similar to the child’s game of ‘Red Light, Green Light’—continue to create confusion, with unpredictable stops and starts affecting economic confidence. The last time we saw this amount of uncertainty was at the beginning of COVID-19. How will the trade war and how will tariffs affect Canada and Canadian real estate?
The good news is that unlike COVID-19, which we had no idea what it was, exactly what it could become, or how long it would take to eradicate, the tariffs are a very solvable issue.
Our leaders and all people need to remain calm and strategic. Remember the wise advice: “Speak when you are angry, and you’ll make the best speech you’ll ever regret.” It’s time for leaders to put on their big-boy pants, de-escalate rhetoric, find common ground, and shift towards acceptable solutions to move both countries forward. This can be resolved quickly if they so choose. Both the Canadian and USA economies and countries can emerge stronger.
In Canada, more inter-provincial trading, diversification of trading partners, more focus on the expansion of our key resources, and better USA/Canada relations. The real estate market will do more than survive, and this is just a temporary pause. Toronto, Guelph, Kitchener, and Waterloo stand ready to benefit significantly from lower interest rates and pent-up demand—it’s not a matter of if it is going to happen; it is more a matter of when.
Is there a move coming up for you during this uncertain future? Our top Guelph real estate agents are here to support you through thick or thin. Reach out today at info@gowylde.ca or call 519-826-7109 with any questions.
