{"id":25499,"date":"2025-03-18T11:11:47","date_gmt":"2025-03-18T18:11:47","guid":{"rendered":"https:\/\/www.roryc.ca\/blog\/?p=25499"},"modified":"2025-03-17T18:32:36","modified_gmt":"2025-03-18T01:32:36","slug":"economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/","title":{"rendered":"Economic Uncertainty, Slowing Demand &#038; Growing Supply May Boost Buyer&#8217;s Chances"},"content":{"rendered":"<p style=\"text-align: justify;\">With US tariffs sowing economic uncertainty, the Bank of Canada cut its key interest rate by 25 basis points to 2.75% today in its seventh consecutive cut.<\/p>\n<p style=\"text-align: justify;\">Experts are anticipating interest rates to fall even further, which could translate to lower mortgage rates, offering hopeful homebuyers a chance to enter the housing market.<\/p>\n<p style=\"text-align: justify;\">Another factor that could present a potential reprieve for buyers is the current pullback in demand, putting power back into purchasers\u2019 hands. The latest data from the Canadian Real Estate Association shows sales activity dipped 3.3% in January, while new listings saw a double-digit jump.<\/p>\n<p style=\"text-align: justify;\">\u201cBuyers now have the widest selection of available homes in years thanks to a surge of properties listed for sale in January,\u201d wrote Robert Hogue, assistant chief economist at the Royal Bank of Canada, in a recent housing report. \u201cThis is especially true in Vancouver, Fraser Valley and Toronto where bargaining power has clearly shifted in buyers\u2019 favour.\u201d<\/p>\n<p style=\"text-align: justify;\">Hogue told the Financial Post that the weaker activity could be attributed partially to rough weather conditions, but the trade war is undoubtedly eroding buyer and seller confidence as well.<\/p>\n<p style=\"text-align: justify;\">It\u2019s possible that reduced demand could level the playing field for younger Canadians hoping to climb the property ladder.<\/p>\n<p style=\"text-align: justify;\">\u201cI think that it is a bit of a Goldilocks moment for young buyers, particularly of the millennial and generation Z cohort,\u201d said Phil Soper, chief executive of real estate firm Royal LePage Real Estate Services Ltd. \u201cThe multiple offer scenarios (and) bidding war scenarios that gen X and older millennials had to deal with have dissipated considerably.\u201d<\/p>\n<p style=\"text-align: justify;\">Soper said he has noticed a 180-degree pivot where homeowners are now waiting to sell their home before beginning their hunt for another, which has meant fewer overall transactions. Instead, he has seen the majority of current transactions propelled by first-time homebuyers.<\/p>\n<p style=\"text-align: justify;\">He compared the current economic uncertainty created by US tariffs and trade threats to the COVID-19 pandemic that rattled the housing market five years ago.<\/p>\n<p style=\"text-align: justify;\">\u201cThere was a lot of doom and gloom and then we found that we could, in fact, continue to operate the economy effectively and work our way through the challenges,\u201d Soper said, pointing to the record-breaking housing market of 2021. \u201cAnd so, the thesis in 2025 is it\u2019s not as bad as people think.\u201d<\/p>\n<p style=\"text-align: justify;\">Soper believes the Bank of Canada will continue to cut its key rate and forecasted that mortgage rates could fall by a full percentage point by the year\u2019s end, drawing more buyers from the sidelines.<\/p>\n<p style=\"text-align: justify;\">The Canada Mortgage and Housing Corporation (CMHC) also forecasted in February that lower mortgage rates and last year\u2019s mortgage reforms could activate the housing market, with the caveat that higher tariffs could lead to a recession, job losses and fewer sales in the housing market.<\/p>\n<p style=\"text-align: justify;\">\u201cMillennials, many of whom are first-time buyers, are currently driving housing demand,\u201d the CMHC report said. \u201cAs remote work declines, we assume this group will prioritize being closer to jobs, boosting sales recovery in larger urban markets.\u201d<\/p>\n<p style=\"text-align: justify;\">Still, home prices could appreciate further, Soper said, despite the current softening in condo prices.<\/p>\n<p style=\"text-align: justify;\">Both the Greater Toronto Area and the Greater Vancouver Area have seen falling condo prices amid a supply glut and lower demand, according to a recent report from Toronto-Dominion Economics.<\/p>\n<p style=\"text-align: justify;\">But there are other factors that could support housing market growth this year, Soper said, pointing to the higher savings rate, which dipped to 6.1% in the fourth quarter of 2024. This was still \u201csubstantially higher\u201d than in 2023, according to Statistics Canada. As well, intergenerational wealth transfers from the baby boomers to younger generations are fuelling gains in net worth and homeownership among some.<\/p>\n<p style=\"text-align: justify;\">The pullback on immigration levels and the foreign buyer ban could reduce demand and help with affordability challenges as well, he added.<\/p>\n<p style=\"text-align: justify;\">\u201cThere are a lot of variables supporting the housing market,\u201d Soper said. \u201cThe one variable that\u2019s a drag is consumer confidence.\u201d<\/p>\n<p style=\"text-align: justify;\">In terms of buying power, some young Canadians experienced major wealth gains through homeownership during the pandemic years, said TD Bank economist Maria Solovieva.<\/p>\n<p style=\"text-align: justify;\">The most recent Survey of Financial Security from Statistics Canada indicated that families where the highest income earner was less than 35 years old saw the largest per cent increase in their real median net worth from 2019 to 2023, up by 179% during this period to $159,100. The young families with the biggest wealth gains were homeowners, their net worth climbing to $457,100 in 2023.<\/p>\n<p style=\"text-align: justify;\">However, Solovieva pointed out that even if the market presents an opportunity with lower mortgage rates and more affordable prices, younger Canadians might not necessarily be in position to take advantage of it.<\/p>\n<p style=\"text-align: justify;\">Canada\u2019s unemployment rate held steady at 6.6% in February, but could edge higher if tariffs deal a blow to businesses, leading to layoffs, lower demand for labour and lower wages.<\/p>\n<p style=\"text-align: justify;\">\u201cIt could potentially be risky for younger households to take advantage of lower prices, in a time when it\u2019s uncertain whether they will have a job in the future,\u201d Solovieva said.<\/p>\n<p style=\"text-align: justify;\">RBC\u2019s Hogue said, \u201cThe crystal ball is very, very foggy as far as the impact on the housing market.\u201d<\/p>\n<p style=\"text-align: justify;\">He added that affordability remains a major issue in markets such as Toronto and Vancouver, so while lower interest rates and flat prices could provide relief for some buyers, others will be staying on the sidelines.<\/p>\n<p style=\"text-align: justify;\">\u201cIt doesn\u2019t mean that people will not be able to realize their dream of homeownership,\u201d he said. \u201cIt might just mean that they\u2019ll have to make some compromises in terms of location and housing types, (like purchasing) a condo instead of a semi-detached or a detached home.\u201d<\/p>\n<p><a href=\"https:\/\/www.intelligencer.ca\/wealth\/smart-money\/tariff-interest-rate-cut-help-millennials-gen-z-enter-housing-market?\" target=\"_blank\" rel=\"noopener\">Could Trade War, Interest Rate Cut Help Millennials and Gen Z Enter Housing Market?<\/a> by Serah Louis | The Intelligencer<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With US tariffs sowing economic uncertainty, the Bank of Canada cut its key interest rate by 25 basis points to 2.75% today in its seventh consecutive cut. Experts are anticipating &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,13],"tags":[],"class_list":["post-25499","post","type-post","status-publish","format-standard","hentry","category-homeselling-homebuying","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Economic Uncertainty, Slowing Demand &amp; Growing Supply May Boost Buyer&#039;s Chances &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Economic Uncertainty, Slowing Demand &amp; Growing Supply May Boost Buyer&#039;s Chances &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"With US tariffs sowing economic uncertainty, the Bank of Canada cut its key interest rate by 25 basis points to 2.75% today in its seventh consecutive cut. Experts are anticipating &hellip; [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/03\\\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/03\\\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"Economic Uncertainty, Slowing Demand &#038; Growing Supply May Boost Buyer&#8217;s Chances\",\"datePublished\":\"2025-03-18T18:11:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/03\\\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\\\/\"},\"wordCount\":964,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Homeselling | Homebuying\",\"Real Estate\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/03\\\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/03\\\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/03\\\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\\\/\",\"name\":\"Economic Uncertainty, Slowing Demand & Growing Supply May Boost Buyer's Chances &#8226; Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2025-03-18T18:11:47+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/03\\\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/03\\\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/03\\\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Economic Uncertainty, Slowing Demand &#038; Growing Supply May Boost Buyer&#8217;s Chances\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\",\"name\":\"Rory C Real Estate | Oakwyn Realty\",\"description\":\"Rory C Real Estate Updates | Home Selling &amp; Buying\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\",\"name\":\"Rory Clipsham\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"contentUrl\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"width\":504,\"height\":504,\"caption\":\"Rory Clipsham\"},\"logo\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.roryc.ca\\\/\",\"https:\\\/\\\/www.facebook.com\\\/pg\\\/BurnabyandCoquitlamHomes\\\/about\\\/?ref=page_internal\",\"https:\\\/\\\/www.instagram.com\\\/roryclipshamhomes\\\/\",\"https:\\\/\\\/x.com\\\/RoryClipsham\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Economic Uncertainty, Slowing Demand & Growing Supply May Boost Buyer's Chances &#8226; Rory C Real Estate | Oakwyn Realty","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/","twitter_card":"summary_large_image","twitter_title":"Economic Uncertainty, Slowing Demand & Growing Supply May Boost Buyer's Chances &#8226; Rory C Real Estate | Oakwyn Realty","twitter_description":"With US tariffs sowing economic uncertainty, the Bank of Canada cut its key interest rate by 25 basis points to 2.75% today in its seventh consecutive cut. Experts are anticipating &hellip; [read more]","twitter_creator":"@RoryClipsham","twitter_site":"@RoryClipsham","twitter_misc":{"Written by":"Rory Clipsham","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"Economic Uncertainty, Slowing Demand &#038; Growing Supply May Boost Buyer&#8217;s Chances","datePublished":"2025-03-18T18:11:47+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/"},"wordCount":964,"commentCount":0,"publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"articleSection":["Homeselling | Homebuying","Real Estate"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/","url":"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/","name":"Economic Uncertainty, Slowing Demand & Growing Supply May Boost Buyer's Chances &#8226; Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2025-03-18T18:11:47+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2025\/03\/economic-uncertainty-slowing-demand-growing-supply-may-boost-buyers-chances\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"Economic Uncertainty, Slowing Demand &#038; Growing Supply May Boost Buyer&#8217;s Chances"}]},{"@type":"WebSite","@id":"https:\/\/www.roryc.ca\/blog\/#website","url":"https:\/\/www.roryc.ca\/blog\/","name":"Rory C Real Estate | Oakwyn Realty","description":"Rory C Real Estate Updates | Home Selling &amp; Buying","publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.roryc.ca\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":["Person","Organization"],"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7","name":"Rory Clipsham","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","url":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","contentUrl":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","width":504,"height":504,"caption":"Rory Clipsham"},"logo":{"@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg"},"sameAs":["http:\/\/www.roryc.ca\/","https:\/\/www.facebook.com\/pg\/BurnabyandCoquitlamHomes\/about\/?ref=page_internal","https:\/\/www.instagram.com\/roryclipshamhomes\/","https:\/\/x.com\/RoryClipsham"]}]}},"_links":{"self":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/25499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/comments?post=25499"}],"version-history":[{"count":1,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/25499\/revisions"}],"predecessor-version":[{"id":25500,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/25499\/revisions\/25500"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=25499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=25499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=25499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}