The Bank of Canada’s Next Move, and Rental Prices Continue to Fall

This week’s top real estate stories.

By  Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week. 

April Rate Decision a Toss-up

The entire economy is up in the air, so why should next week’s rate decision be any different? According to the experts, last month’s surprise drop in employment — the first since January of 2022 — the stock market crash of this week, and a rise in the Canadian 5-year bond yield are forcing the Bank of Canada to make a difficult decision. Though the Bank had suggested it would seek to slow down or stop its rate-cutting crusade back in January, the market appears to have other plans, putting the odds of yet another rate cut next week at 50-50. 

The Hottest Properties in a Cold Market  

Real estate transactions aren’t a race, but if they were, three-bedroom single-family homes would take the crown in the GTA. According to our latest data the three-bedroom option sold in under two weeks on average in the first quarter of the year, despite significant slowdowns in sales across the region. Furthermore, while single-family homes with three bedrooms were snatched up in an average of 23 days, some parts of town — like Glen Abbey in Oakville and Riverdale in Old Toronto — averaged just 8 days on the market, while 18 regions saw the home type sell in 10 days or less.

Rental Prices Keep Falling  

While everyone’s distracted by trade wars, stock market crashes and the threat of becoming the 51st American state, Canada’s rental prices have been quietly plummeting. According to the latest rent report by Urbanation and Rentals.ca, asking rents were down 2.8% last month compared to the year prior, averaging $2,119. Rents dropped about 6.5% in Toronto and Vancouver, 4% in Montreal and over 9% in Calgary. According to the study, apartment rates are down 1.5% from last year, condos rates dropped 3.8%, while house and townhouse rent declined 5.6%. March also marked the sixth straight month of asking rent declines.

GTA Prices Plummet

Toronto is still one of the most expensive housing markets in the world, but now slightly less so. According to a report by the Toronto Regional Real Estate Board, average home prices dropped 2.5% in March compared to last year, while lower borrowing rates have made the region more affordable overall. According to the report, prices were down across almost every home type in almost every region, with only detached and semi-detached homes in the 416, South Simcoe townhouses, and single-family homes in Orangeville seeing modest price increases. Transaction volumes, meanwhile, dropped significantly across the board — especially in the 905.

Home Bidding Stagnant in the GTA

The hot spring market many anticipated before the downstairs neighbour decided to tank the global economy has led to a standstill in the GTA. We here at Wahi like to compare asking prices to median sales prices to see where the market is heading, and last month things seemed to be moving towards overbidding, but that momentum is now gone, according to our latest report. As seen in February, 20% of GTA neighbourhoods remain in overbidding territory, 73% are still seeing houses going for under asking, and 7% for list prices. Those seeing the highest premiums are all in Old Toronto. 

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