Central bank announces pause as trade tensions rumble on

By Fergal McAlinden
16 Apr. 2025

The Bank of Canada has hit pause on its rate-cutting path, keeping its benchmark interest rate unchanged in April as it weighs up the likely impact to the Canadian economy of US president Donald Trump’s global trade war.  

The central bank said on Wednesday morning it was leaving its overnight rate at the current level of 2.75%, opting against bringing borrowing costs lower again amid lingering concern about the possible effect of Trump’s tariffs on Canadian inflation.  

Money market odds of a rate cut jumped yesterday after the consumer price index (CPI) unexpectedly dipped to 2.3% despite economists’ projections that it would remain unchanged from February at 2.6%.  

But analysts still saw a roughly 50% chance that the Bank would leave rates untouched, with its prior decision (a 25-basis-point cut in March) seeing central bank officials emphasize the need to balance the potential negative economic impact of Trump’s policies – which include steep levies against Canadian steel and aluminum – with upside risks to inflation.  

The move marks the first time in nearly a year that the Bank has left rates unchanged, having introduced seven consecutive cuts since last April and moved that benchmark rate from a two-decade high of 5%.  

Leading banks are likely to leave their own prime rates unchanged – and the Bank’s path ahead on rates for the remainder of 2025 is also unclear. Trump’s tariff war could see prices rise sharply while a potential recession is also looming into view, with the central bank’s first-quarter business outlook survey indicating that around 32% of surveyed firms now expect the economy to see a downturn, up sharply from 15% in Q4.  

Top lenders including TD, Royal Bank of Canada (RBC) and Canadian Imperial Bank of Commerce (CIBC) expect the benchmark rate to land at 2.25% by the end of the year, while Bank of Montreal (BMO) and National Bank see that rate slipping to 2% before January.  

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Housing supply crisis shows little sign of improving

By Fergal McAlinden
15 Apr. 2025

Housing starts surprisingly fell by 3.3% last month in Canada compared with February as a sluggish pace of national homebuilding this year continued.

Data from national housing agency Canada Mortgage and Housing Corporation (CMHC) showed on Tuesday that the seasonally adjusted annualized rate (SAAR) of housing starts slid to 214,155 units last month, down from a revised 221,405 units in February.

That marked an unexpected dip, well below economists’ projections of 242,500 starts for the month, and the second monthly decline after starts also dived in February.

In centres with a population of 10,000 or greater, actual housing starts came in at 14,924 units compared with 17,052 the same time last year, while the monthly SAAR for those centres fell by 2.8% (from 209,093 units to 203,285).

The pace of housing starts in Montreal surged in March, jumping by 138% year over year thanks mainly to an increase in multi-unit starts. Still, that trend was offset by significant declines in Vancouver and Toronto, which saw starts fall by 59% and 65% respectively.

Multi-unit starts in Vancouver were well down, while multi-unit and single-detached starts fell in Toronto.

The pace of home construction shows little sign of rising to the levels needed to ease Canada’s housing crisis, with national supply levels still millions short of what CMHC says is required to make housing affordable for all Canadians by 2030.

Actual housing starts ticked slightly upwards in 2024 compared with the previous year, the housing agency said in January, increasing by 2% in centres with a population of 10,000 or more.

Overall unit starts came in at 227,697 for the year compared with 223,513 in 2023, with the total for all areas in Canada also increasing by 2% year over year to 245,120 units.

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Consumer price index falls in March, boosting prospects of another rate reduction

By Fergal McAlinder
15 Apr. 2025

Canada’s inflation rate fell by more than expected in March, sliding to 2.3% and boosting odds of a central bank interest rate cut tomorrow (April 16).

Statistics Canada said on Wednesday that the consumer price index (CPI) slowed compared with the same time last year, down from 2.6% in February and lower than economists polled by Reuters, who forecasted no change in March, had expected.

That decline was spurred mainly by lower costs at the pump and a decline in travel tours prices, although core measures of inflation – the Bank of Canada’s preferred gauge – remained elevated.

Mortgage interest costs were a significant contributor to overall price growth, rising by 7.9% on a year-over-year basis, while rent prices (5.1%) were also up. Food purchased from restaurants, passenger vehicle insurance premiums, and property taxes and other special charges jumped compared with the same time in 2024.

Money markets priced odds of a central bank rate cut tomorrow at approximately 50-50 in the wake of the latest inflation data, having previously seen chances of a reduction at just higher than a third.

Following its last benchmark rate decision, a 25-basis-point cut in March, the central bank emphasized the importance of keeping inflation under control as US president Donald Trump’s trade war threatens to drive prices upwards.

But Tuesday’s inflation reading opens the door to another cut tomorrow, according to Canadian Imperial Bank of Commerce (CIBC) economist Katherine Judge.

“The easing in price pressures is consistent with the Bank of Canada cutting interest rates by 25 basis points at tomorrow’s meeting,” she wrote, “with the downside risks to growth from the trade war outweighing any upside to inflation from tariffs in our view.”

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Moving in together, whether as roommates, partners, or friends, is an exciting milestone. But what happens if things don’t go as planned? A co-habitation agreement can help clarify responsibilities and expectations before issues arise.

What is a Co-Habitation Agreement?

A co-habitation agreement is a legal document that outlines financial and legal obligations when people share a home. It covers aspects like:

• Rent and utility payments

• Property ownership and division

• What happens if someone moves out

• Conflict resolution procedures

Why It’s a Smart Move

• Avoids misunderstandings: Clearly defining responsibilities reduces potential conflicts.

• Protects your financial interests: Ensures no one is left unfairly covering extra expenses.

• Provides legal clarity: If disagreements arise, the agreement acts as a guide for resolution.

Learn More

Interested in setting up a co-habitation agreement? Visit https://yourmagnoliagroup.ca/cohabitationagreement for more details on how to create one that suits your needs.

Final Thoughts

While no one likes to think about worst-case scenarios, preparing for them is the best way to protect yourself and your home. A co-habitation agreement ensures that everyone involved understands their rights and responsibilities, making for a more harmonious living arrangement.

Many homebuyers don’t realize the crucial role a real estate lawyer plays in closing a deal. While they may not be involved in your home search, their expertise ensures a smooth and legally sound transaction.

What Does a Real Estate Lawyer Do?

1. Title Search & Ownership Verification A lawyer ensures the property title is clear of liens, disputes, or legal claims that could impact your ownership.

2. Contract Review They carefully examine all legal documents, including the Agreement of Purchase and Sale, to ensure your interests are protected.

3. Mortgage & Financial Document Review They help ensure the terms of your mortgage align with what you agreed upon with your lender.

4. Closing the Deal Your lawyer handles the final exchange of funds, registers the property under your name, and ensures all legal requirements are met before handing you the keys.

Why You Need a Lawyer for Closing

A home purchase is one of the biggest financial transactions you’ll ever make. Having a legal expert ensures that everything is properly documented, protecting you from potential disputes down the road.

Bottom Line

Think of your real estate lawyer as the final safeguard in your home-buying journey—making sure you walk away with a secure investment.

When buying a home, it’s easy to get caught up in the excitement—imagining where your furniture will go, planning your first gathering, or picturing lazy Sunday mornings in your dream space. But before you pick out paint swatches, there’s one crucial step you should never skip: the home inspection.

Why a Home Inspection is Essential

A home inspection is like a health check-up for a house. It gives you a clear understanding of the home’s condition, highlighting any existing or potential issues. This step is invaluable whether you’re buying a brand-new build or a charming century home.

Uncovering Hidden Issues

Even a home that looks picture-perfect can have underlying problems. Structural concerns, plumbing leaks, outdated electrical systems, or hidden mold can be costly surprises down the road. A thorough inspection ensures you’re aware of these issues before you sign on the dotted line.

Negotiation Power

Knowledge is power. If an inspection reveals necessary repairs, you may have the leverage to negotiate a lower price or request that the seller address these issues before closing. This can save you thousands and prevent post-move-in regrets.

Peace of Mind

At the end of the day, an inspection reassures you that you’re making a sound investment. It eliminates guesswork and helps you make informed decisions about your future home.

How to Handle Inspection Issues

If problems arise, don’t panic! Here’s what to do:

• Consult your REALTOR®: They can help you navigate the findings and decide on the best course of action.

• Request repairs or credits: Some issues can be addressed before closing, or you can negotiate a price adjustment.

• Assess deal-breakers: Some problems, like foundation issues or major roof damage, may require reconsideration of the purchase.

Final Thought

No home is perfect, but an inspection ensures you know exactly what you’re walking into. Whether you’re buying a fixer-upper or a modern masterpiece, this step is key to protecting your investment.

Hey, Waterloo Region! Ready to shake off the winter blues and dive into some springtime fun? April is bursting with events that'll have you crafting, laughing, and maybe even doing a little jig. Here's the lowdown:

1. ScrapFest in Kitchener 2025 | April 11–12

Calling all scrapbookers, cardmakers, and mixed media mavens! ScrapFest is rolling into The Aud for two days of paper crafting paradise. With a 28-hour crop session (yes, you read that right), over 25 exhibitors, and workshops led by Canadian crafting royalty, it's the ultimate creative escape. ​Explore Waterloo+1Explore Waterloo+1Bandsintown+3Explore Waterloo+3StayHappening+3

2. Steve-O Live in Kitchener | April 5

Brace yourselves—Steve-O is bringing his wild antics to Apollo Cinema. Known for his outrageous stunts and comedic flair, this is one show that's sure to be unforgettable. Tickets are flying faster than a daredevil in a rocket, so grab yours pronto! ​StayHappening+2AllEvents+2HappeningNext+2

3. Elmira Maple Syrup Festival | April 5

Sweet tooth alert! The world's largest one-day maple syrup festival is happening just a short stack away in Elmira. Indulge in all things maple, enjoy live entertainment, and celebrate this sticky Canadian staple. ​Explore Waterloo+4StayHappening+4Explore Waterloo+4Explore Waterloo

4. Cambridge Wedding Expo Spring 2025 | April 6

Tying the knot or know someone who is? Tapestry Hall is hosting the Cambridge Wedding Expo, featuring top wedding professionals ready to make your big day a dream come true. From dresses to décor, find it all under one elegant roof. ​AllEvents+1StayHappening+1

5. April Wine in Kitchener | April 24

Rock out with Canadian legends April Wine as they take the stage at The Aud. With decades of hits, they're sure to get you singing along and reminiscing. Don't miss this blast from the past! ​Eventbrite+12HappeningNext+12Explore Waterloo+12Explore Waterloo

6. Kitchener Psychic & Crystal Fair | April 25

Curious about what the future holds? Bingemans is hosting a mystical gathering of psychics, mediums, and crystal vendors. Whether you're seeking guidance or just a gorgeous gem, this fair has you covered. ​AllEvents+1StayHappening+1

7. KW Pet Expo 2025 | April 26

Pet lovers, rejoice! The Kitchener Memorial Auditorium Complex is going to the dogs... and cats, birds, and more. Discover the latest in pet products, enjoy live demonstrations, and maybe even adopt a new furry friend. ​AllEvents+2HappeningNext+2StayHappening+2

8. Strong Towns Local Conversation | April 7

Passionate about urban planning and community development? Join the conversation in downtown Kitchener to discuss ways to make our region even stronger. It's grassroots, it's engaging, and your voice matters. ​

9. Easter Brunch Buffet | April 20

Hop over to Aqua Lounge & Restaurant at the Crowne Plaza Kitchener-Waterloo for a delectable Easter brunch. Gather with family and friends to celebrate the season with a feast fit for a bunny. ​StayHappening+4HappeningNext+4AllEvents+4

10. "The Full Monty" at St. Jacobs Country Playhouse | April 9–27

Get ready for laughs and heartfelt moments as this hit musical takes the stage. Follow the journey of six unemployed steelworkers who come up with a bold way to make some cash. It's cheeky, it's charming, and it's a must-see. ​

Mark your calendars and get ready to make some memories this April. Whether you're into crafts, comedy, or community chats, Waterloo Region has something special just for you. See you out there!

Luxury real estate is more than just high-end properties—it’s about an unparalleled experience, meticulous attention to detail, and the highest level of service. That’s exactly what we deliver with our newest brand, Magnolia Group Realty - Luxury Collection.

What You Can Expect from Magnolia Group Realty - Luxury Collection

🌟 Exclusive Listings & Unmatched Market Knowledge
Our team specializes in luxury properties, ensuring that your buying or selling experience is seamless and sophisticated.

🎯 Strategic Marketing for Luxury Homes
We utilize elite marketing strategies, including high-end photography, cinematic video tours, global exposure, and targeted advertising to attract the right buyers.

💎 White-Glove Service
Our clients receive concierge-level service throughout their entire real estate journey—because luxury is about the experience as much as the home itself.

📍 Follow Us on Socials @mymagnolialuxurycollection
Stay up-to-date on the latest luxury listings, market insights, and stunning homes by following us on social media. Whether you’re buying or selling a luxury property, we’re here to provide expertise and elevate your experience.

Are you ready to step into the luxury real estate market? Contact us today to learn how Magnolia Group Realty - Luxury Collection can help you achieve your real estate goals.

Selling a condo in a shifting market can feel like an uphill battle, but with the right strategy and expert guidance, you can still achieve a successful sale. At Magnolia Group Realty, we specialize in navigating complex real estate markets, and we’re here to share some key strategies for selling your condo in today’s market.

1. Price It Right from the Start Overpricing can scare away potential buyers. In a competitive market, a well-priced condo attracts more interest and can lead to a faster sale. Our team provides expert pricing strategies tailored to the latest market trends.

2. Stage to Impress Staging can make a significant difference! A clean, decluttered, and well-styled condo will stand out in listing photos and showings. We offer expert staging advice to highlight your home’s best features.

3. Market Like a Pro Gone are the days of just putting up a ‘For Sale’ sign! We leverage professional photography, virtual tours, targeted social media marketing, and MLS® exposure to reach the right buyers.

4. Work with the Right REALTOR® Magnolia Group Realty has a deep understanding of the Waterloo Region condo market, and our expert team knows how to navigate the challenges of selling in this environment. We’ll help you maximize your condo’s value and get it sold efficiently.

If you’re thinking about selling your condo, reach out to us today for a consultation! Let’s get your property SOLD.