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Canada's housing market is experiencing a slower-than-usual spring, with national home sales in April 2025 down nearly 10% compared to the previous year. Experts attribute this sluggishness to economic uncertainty and trade tensions, particularly with the United States. Despite this, month-over-month sales remained steady, suggesting a potential stabilization. Buyers are currently cautious, awaiting clearer economic signals before making purchasing decisions.
The upcoming Bank of Canada interest rate decision, scheduled for June 4, could significantly influence market activity. A potential rate cut may lower mortgage rates, making homeownership more accessible and possibly spurring increased demand. However, the central bank must balance this against rising unemployment and the broader impacts of the ongoing trade war. Economists suggest that a rate reduction could help alleviate some economic pressures, potentially revitalizing the housing market.
Regional disparities are evident, with affordable markets in the Prairies, Quebec, and the East Coast experiencing heightened activity, while traditionally hot markets like Toronto and Vancouver have cooled. In major cities, an oversupply of condominiums has led to price declines, as investor interest wanes. Conversely, single-family homes remain in higher demand. Prospective buyers with stable employment may find favorable opportunities, particularly in more affordable regions or within the condo market, despite the prevailing economic uncertainties.
Read the full article on: Global NEWS
