The Bank of Canada (BoC) may not have to raise its key overnight rate further if inflation cools in line with the central bank's expectations, Governor Tiff Macklem said in an interview with the Canadian Broadcasting Corp.

"The economy is not overheated anymore and ... we do think there's more inflation relief in the pipeline, and if that comes through, we won't have to raise rates further," Macklem said in a CBC Radio interview

https://ca.finance.yahoo.com/news/bank-canadas-macklem-says-interest-140626880.html

in the BoC’s own latest survey of financial market participants, released Nov. 6, respondents expect the BoC to start cutting rates even sooner, in April.

That means an accelerated timetable for mortgage rate declines.

The latest forecasts for five-year variable mortgage rates average 5.4 per cent by the end of next year, from a current 5.8 per cent. The forecast rates for 2025 and 2026 are 4.4 per cent and 4.1 per cent, respectively.

https://www.thestar.com/business/mortgage-rates-will-start-dropping-sooner-than-expected-here-s-when-and-why/article_708918e3-fbc8-54ff-90b5-73dc1d83612d.html

The Canadian economy is already sputtering.

But as high interest rates continue to take a bite out of household finances and business spending, could that sputtering turn into a deep recession with significantly higher unemployment in 2024?

https://www.thestar.com/business/where-is-canadas-economy-headed-in-2024-brace-yourself/article_a0303be2-9388-11ee-88ff-7b55ff88320b.html?utm_medium=SocialMedia&utm_campaign=Business&utm_content=canadaeconomy

The Canadian economy experienced a contraction “unprecedented outside a recession,” according to a new analysis from National Bank Financial, a trend driven, at least in part, by a population spike that has squeezed per capita GDP growth.

The bank’s monthly economic analysis says that “signs of an economic slowdown have been multiplying.”

https://nationalpost.com/news/canada/canada-immigration-per-capita-gdp?s=09

Toronto real estate market stats for December 2023. Please contact to receive a detailed breakdown.

Even with expected rate cuts, mortgage payments will continue to rise for years: BoC research - https://www.canadianmortgagetrends.com/2024/01/even-with-expected-rate-cuts-mortgage-payments-will-continue-to-rise-for-years-boc-research

Real estate buyers in Toronto find competition has returned

https://www.theglobeandmail.com/real-estate/toronto/article-real-estate-buyers-in-toronto-find-competition-has-returned/

Here’s how much home you can get for $1M across Canada these days
https://globalnews.ca/news/10308328/canada-housing-1-million-properties-2024/

Should homebuyers wait for bigger rate drops or jump back into the market now?
https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-should-homebuyers-wait-for-bigger-rate-drops-or-jump-back-into-the/

Bank of canada decided to hold the interest rate. Insight into the decision and report

Bank of Canada rate cut watchers starting to look past the summer
https://financialpost.com/real-estate/mortgages/mortgage-rates/bank-of-canada-rate-cut-watchers-look-past-summer

Homebuyers who are already pre-approved for a mortgage should enter the housing market now instead of waiting for interest rates to go down, according to one industry expert.


https://financialpost.com/real-estate/homebuyers-should-jump-into-the-market-before-interest-rates-go-down-says-expert

June rate-cut bets rise as Canada's inflation cools more than expected

Canada’s annual inflation rate unexpectedly slowed to 2.8 per cent in February, bolstering expectations that the Bank of Canada will soon come off the sidelines and begin cutting interest rates.
Statistics Canada said on Tuesday that contributors to February's deceleration included an easing of grocery prices, and the cost of cellular services and internet access services. Offsetting the slowdown was a year-over-year rise in gas prices, which climbed 0.8 per cent after a 4 per cent drop in January.


https://ca.finance.yahoo.com/news/june-rate-cut-bets-rise-as-canadas-inflation-cools-more-than-expected-135451541.html

A federal proposal to include rental payments in calculating credit scores might help some Canadians move into home ownership, but it could have consequences on renters who are already struggling with rising costs.
One measure of the proposed Canadian Renters' Bill of Rights, announced last week by Prime Minister Justin Trudeau, would use timely rental payments to calculate a person's credit score. This, it said, would help level the playing field for young renters, particularly those who want to eventually buy a home.
"Renters deserve credit for the money they put toward rent over the years, especially when it comes time to apply for a mortgage for their first home," the announcement said.

https://www.cbc.ca/news/business/rental-payments-credit-score-federal-government-1.7160510

Luxury home sales are up 50% outside of Toronto, as buyers migrate to more affordable regions

Luxury home sales have sprung to life in the first two months of the year as more than two-thirds of Canadian markets recorded double digit growth, including the GTA with a 14 per cent increase year-over-year.

#reesestate #torontorealestate #toronto

https://www.thestar.com/real-estate/luxury-home-sales-surge-by-up-to-50-as-buyers-migrate-away-from-high-priced/article_a1ea4e62-ed1c-11ee-8f5b-672aeef827e3.html

Recent statistics are showing a worrisome picture of Toronto's downtown core - an 18% vacancy rate in office spaces as of the first quarter of 2024. While the national office market is picking up, Toronto is experiencing a slight increase in vacancies, now at 17.4%. Businesses are not keen in occupying office spaces in Toronto. 
Steve Talakoub highlighted the need to brace ourselves for even higher vacancy rates. With several new commercial developments wrapping up this year, only 2.9 million square feet out of a total of five million have been pre-leased. It's a challenging time, but it also presents opportunities for growth and innovation. As Toronto's office landscape evolves, we need to be proactive in adapting to these changes and take advantage of the current market trend.

The Bank of Canada has maintained its key interest rate at five percent for the sixth time since last July. The central bank is optimistic, projecting that inflation will approach its two percent target by this year and hit the 2% mark by 2025. This expectation is supported by anticipated solid GDP growth, driven by population growth and increased household spending. This will affect the real estate market and may cause a temporally slow down in the number of transactions. Governor Tiff Macklem acknowledged the public’s anticipation for a rate reduction and suggested that a cut in June is a possibility if current trends persist. Despite a decrease in inflation to 2.8 percent in February, high costs of rent and mortgage interest are still contributing to the overall inflation rate.

What is a halal mortgage? How interest-free home financing works in Canada

https://globalnews.ca/news/10443777/halal-mortgage-canada-explainer-budget-2024/