Written by: Buffini & Co Blast Past Financial Headwinds! For many, spring is tax season - a perfect time to evaluate your overall financial health. Use the opportunity to refine your budget and set yourself up for financial success for the rest of the year. What will spark momentum and power you forward? START HERE:

• Establish short and long-term goals.
• Reduce unnecessary expenses.
• Create a budget.
• Explore other income streams.
• Consult with a qualified financial professional.

92% of Canadians review their financial plan at least once a year. Your Financial Launch Pad Build a long-term financial strategy with steps you can take today: 3. Assess - Track all monthly expenses, including scheduled payments (e.g., mortgage) and miscellaneous expenses. 2. Budget - Check out online budgeting tools like YNAB (ynab.com), Goodbudget (goodbudget.com) or Honeydue (honeydue.com). 1.  Commit - Make a promise to yourself and your family - you can do this!

• Reduce Spending - Think about what you can eliminate from your budget, even if only temporarily (e.g., streaming platform services, daily coffee runs, takeout meals, etc.).
• Play the Long Game - Time goes by fast! Invest in your future by contributing to a retirement account.
• Job Options - Explore gig work and temporary second jobs. Or it may finally be the right time to make the leap to a new career!

Written by: Dr. Sherry Cooper & Associates Bank of Canada Cuts Rates by 25 BPS on Tariff Concerns The Bank of Canada (BoC) reduced the overnight rate by 25 basis points this morning, bringing the policy rate down to 2.75%, within the neutral range of 2.25%—2.75%. Tariff tremors have already led to a decline in consumer confidence and spending, a weakening labour market, and a decline in business investment. Compound that with falling population growth, and you see why the Governing Council took the overnight rate down again even though they state that monetary policy cannot offset the impacts of a trade war. Trade wars lead to higher prices and slower growth. The rise in prices causes consumers to tighten their belts, concerned about the impact of tariffs on their income and investments. Today, there is a 25% tariff on steel and aluminum exports to the US. This impacts Canada the most as it supplies roughly 80% of US aluminum demand. The EU introduced retaliatory tariffs on US goods in response. Canada added to its retaliation. Recent data suggest the US economy is slowing. Monetary policy remains restrictive as the real overnight rate (2.75% minus the headline inflation rate) is 85 bps, up from the historical average of 60 bps. Five-year Government of Canada bond yields increased on the news to 2.65% compared to 4.05% in the US. The Federal Reserve is not expected to cut rates when it meets again this month. Despite relatively strong GDP growth in Canada in the second half of last year, home sales and hiring began to slow in late January due to tariff threats, and more tariffs are yet to come. On March 20, China is expected to impose 100% retaliatory tariffs on Canadian canola oil, while pork and seafood will face a 25% levy. The Chinese tariffs are a push-back against Canada for imposing a 100% levy on electric cars from China and  25% on steel and aluminum. On April 2, the US announced it will impose reciprocal tariffs on nations that have levied tariffs on US goods. President Trump has also said he is considering imposing retaliatory tariffs on Canadian dairy and lumber. “We’re now facing a new crisis. The economic impact could be severe depending on the extent and duration of new US tariffs,” Macklem said in his prepared remarks. Macklem called the uncertainty of the tariff dispute “pervasive” and said that it was “already causing harm.” Officials said the “continuously changing” US tariff threat was hitting consumers’ spending intentions and limiting businesses’ plans to hire and invest. At the same time, Macklem said the bank “will proceed carefully with any further changes” to borrowing costs, and officials would “need to assess both the upward pressures on inflation from higher costs and the downward pressures from weaker demand.” Bottom Line These are uncertain times. The US is determined to impose worldwide tariffs, disproportionately hitting Canada, Mexico, and China, the US’s top trading partners. This is a misguided neo-Mercantilist policy. Mercantilism assumes that the global economic pie is fixed, so if one country prospers, another must fail. This idea of a zero-sum game was debunked in the 18th century by Adam Smith and others who showed that if countries have a competitive advantage in various products and services, all are better off by producing and trading those products with the rest of the world. It is not a zero-sum game. The economic pie grows with trade. This was the idea behind globalization and the USMCA free trade agreement. Given Canada’s vulnerability to tariffs, the economy will suffer more than the US, which has a relatively closed economy (where exports are a small proportion of GDP). Prices will rise depending on the duration and size of the coming tariffs, but mitigating the inflation will be the weakness in economic activity. Stagflation, a buzz-word in the 1970s, is back in the lexicon. We expect the BoC to continue cutting the policy rate in 25-bps increments until it reaches 2.25% this June, triggering a rebound in home sales. Layoffs and spending cuts will dampen sentiment, but lower interest rates will bring buyers off the sidelines.

Written by: Dr. Sherry Cooper & Associates Trump Did It - Trade War Starts Today Trump has imposed tariffs of 25% on goods coming from Mexico and Canada, 10% on Canadian energy, and an additional  10% on goods from China. He justified these actions by claiming they would force Mexico and Canada to address issues related to undocumented migration and drug trafficking. However, while precursor chemicals for fentanyl come from China and undocumented migrants enter through the southern border with Mexico, Canada accounts for only about 1% of both issues. The Wall Street Journal, typically considered a conservative publication, criticized Trump, labelling this as the “dumbest trade war in history.” The Journal stated, “Mr. Trump sometimes sounds as if the US shouldn’t import anything at all, that America can be a perfectly closed economy making everything at home. This is called autarky, and it isn’t the world we live in or one that we should want to live in, as Mr. Trump may soon find out.” This misguided tariff policy will cause untold damage to the global economy, including the US. Americans will suffer the impact of higher prices and shortages of key products imported from Canada and Mexico. The various North American free trade agreements aimed to improve manufacturing efficiencies and meld the three economies to maximize productivity and the free flow of essential inputs into production. Canada is the number one supplier of steel and aluminum and there are no readily available substitutes for these crucial inputs. A plethora of products and construction activity use steel and aluminum. Aluminum is produced in Quebec where hydroelectricity is plentiful and cheap. US farmers depend on Canadian potash and auto parts, and Canada is the number one exporter of oil and gas to the US. Consider the US auto industry, which operates as a North American entity due to the highly integrated supply chains across the three countries. In 2024, Canada supplied nearly 13% of US auto parts imports, while Mexico accounted for almost 42%. Industry experts note that a vehicle produced on the continent typically crosses borders multiple times as companies source components and add value most cost-effectively. This integration benefits everyone involved. According to the Office of the US Trade Representative, the industry contributed more than $809 billion to the US economy in 2023, representing about 11.2% of total US manufacturing output and supporting 9.7 million direct and indirect US jobs. In 2022, the US exported $75.4 billion in vehicles and parts to Canada and Mexico. According to the American Automotive Policy Council, this figure rose 14% in 2023, reaching $86.2 billion. Without this trade, American car makers would struggle to compete. Regional integration has become an industry-wide manufacturing strategy in Japan, Korea, and Europe. It leverages high-skilled and low-cost labour markets to source components, software, and assembly. As a result, US industrial capacity in automobiles has grown alongside an increase in imported motor vehicles, engines, and parts. From 1995 to 2019, imports of these items rose by 169%, while US industrial capacity in the same categories increased by 71%. Thousands of well-paying auto jobs in states like Texas, Ohio, Illinois, and Michigan owe their competitiveness to this ecosystem, which relies heavily on suppliers in Mexico and Canada. Tariffs will also cause mayhem in the cross-border trade of farm goods. In fiscal 2024, Mexican food exports comprised about 23% of US agricultural imports, while Canada supplied some 20%. Many top US growers have moved to Mexico because limits on legal immigration have made it hard to find workers in the US. Mexico now supplies 90% of avocados sold in the US. Yesterday, the President’s tariff announcement led to an immediate sell-off in stock markets worldwide. Bonds, seen as a safer haven, rallied sharply, taking longer-term interest rates down sharply in anticipation of a meaningful slowdown in economic activity. The Canadian dollar sold off sharply, though it clawed back some of its losses overnight. WTI oil prices dropped 2% yesterday and continued to decline today. Bottom Line This is a lose-lose situation and President Trump underestimates the negative fallout of his actions at home and abroad. Retaliation will be swift. Americans will balk at the disruption of supply chains (think waiting for months for a new car) and the increase in the price of many products. Legendary investor, Warren Buffet, called the tariffs an “act of war.” Before the tariffs were imposed, we expected roughly 2% growth this year. Assuming the tariffs remain in place for a year, the Canadian economy will plunge into recession. We will likely see a few quarters of negative growth before growth gradually resumes. Despite the inflation risk, the Bank of Canada will respond aggressively to minimize the meltdown in labour markets and the economy in general. When the Governing Council meets again on March 12, we expect another 25 bps cut in the overnight policy rate, bringing it down to 2.75%. Over the next year, we expect the Bank to continue to ease credit conditions, and a 2.0% overnight rate is likely. The Canadian 5-year yield, a bellwether for setting fixed mortgage rates, has fallen to 2.51%, its lowest level in nearly three years. Lower interest rates are favorable for housing markets, although the inevitable rise in unemployment and drop in spending will mitigate this effect.

Written by: Buffini & Co Each year only 1 out of 10 people complete their New Year's resolutions. RESOLUTION: A broad statement of intent or desire to change something. GOAL: A written goal focuses effort and sustains you through challenges or setbacks. Make This Year Different. Crush Your Goals! Kaizen: Is a Japanese business philosophy that encourages making small, continuous changes that will lead to a big impact. Use its principles to reach your own business and personal goals. The Four Keys of Kaizen:

1. Identify one small specific area of your life you would like to change.
2. Take time to examine where your resources might be misdirected.
3. Focus on making small, incremental steps toward your goal.
4. Commit to a time each week to review progress, evaluate what's working, and what needs to adjust.

Written by: Dr. Sherry Cooper & Associates Stronger-Than-Expected Jobs Report in December Today’s Labour Force Survey for December was much stronger than expected, as many thought the Canada Post strike would have a larger impact. Employment rose by 90,900 net new jobs last month, and the employment rate—the proportion of the population aged 15 and older who are employed— increased by 0.2 percentage points to 60.8%. The jobless rate declined a tick to 6.7%. Employment gains in December were led by educational services (+17,000; +1.1%), transportation and warehousing (+17,000; +1.6%), finance, insurance, real estate, rental and leasing (+16,000; +1.1%), and health care and social assistance (+16,000; +0.5%). In December, employment increased in Alberta (+35,000; +1.4%), Ontario (+23,000; +0.3%), British Columbia (+14,000; +0.5%), Nova Scotia (+7,400; +1.4%), and Saskatchewan (+4,000; +0.7%), while there was a decline in Manitoba (-7,200; -1.0%). Employment changed little in the other provinces. Total hours worked rose 0.5% in December and were up 2.1% compared with 12 months earlier. Average hourly wages among employees were up 3.8% (+$1.32 to $35.77) on a year-over-year basis in December, following growth of 4.1% in November (not seasonally adjusted). Employment rose by 91,000 (+0.4%) in December, mostly in full-time work (+56,000; +0.3%). This follows an increase in November (+51,000) and marks the third employment gain in the past four months. The year 2024 ended with 413,000 (+2.0%) more people working in December compared with 12 months earlier. This year-over-year growth rate was comparable to the one observed in December 2023 (+2.1%) and to the average growth rate for December over the pre-COVID-19 pandemic period of 2017 to 2019 (+1.9%). Public sector employment rose by 40,000 (+0.9%) in December, the second consecutive monthly increase. In the 12 months to December, public sector employment rose by 156,000 (+3.7%), driven by gains in the public-sector components of educational services as well as health care and social assistance. Private sector employment was little changed in December (+27,000; +0.2%) and was up 191,000 (+1.4%) on a year-over-year basis. The number of self-employed people rose by 24,000 (+0.9%) in December, the first increase since February. This brought total gains in self-employment for the year to 64,000 (+2.4%). Wage inflation slowed markedly in November and December, providing welcome news for the Bank of Canada. While the strength of this report has led some to speculate the central bank will ease less aggressively, we agree that jumbo rate cuts are a thing of the past. However, monetary policy is still overly restrictive, especially if the Trump tariff threats come to fruition. We expect the BoC to take the overnight rate down from 3.25% today to 2.5% by mid-year in quarter-point increments. Bottom Line The Canadian Labour Force Survey is notoriously volatile. One robust report does not change the Bank of Canada’s easing plans to return interest rates to neutrality–the level at which monetary policy is neither contractionary nor expansionary. Today’s US employment report was also quite strong, reducing the unemployment rate to 4.1%. While the Fed is unlikely to cut rates when the FOMC meets again on January 29, the Bank of Canada has room to ease further. Canada’s economy is far more interest-sensitive than the US, and interest rates in Canada -though historically low compared to the US- are still overly restrictive.

Written by Manraj Dosanjh of REW Marking five years since the pandemic, Metro Vancouver real estate remains a strong long-term investment. A guide for first-time buyers, young families and presale purchasers seeking the latest insights for newer resale homes in popular Metro Vancouver neighbourhoods. As we begin a new year and look ahead, it’s a natural time for reflection. This is an opportunity to assess what’s going well and where attention might be needed, while also taking stock of how far you’ve come on your personal journey, despite life’s inevitable twists and turns. In the context of the local real estate market, it’s hard to believe that we’re approaching the five-year mark since COVID-19 was declared a pandemic, dramatically reshaping the world around us. While nearly half a decade has passed, the rapid pace of change during this period has made time feel like it’s flown by. How we work and live has been significantly disrupted, ushering in a new phase of growth for real estate markets across the region. Metro Vancouver real estate has proven its resilience through these challenges. Whether as an investment or a personal home, the market has weathered significant obstacles. Despite concerns of a potential collapse in property values, with interest rates reaching their highest levels in over 20 years, residential property values have seen double-digit growth since the pandemic began. Even with the challenges of the past five years and ongoing economic uncertainty, residential prices have remained both resilient and stable. While economic risks still persist, I am confident that prices will continue to hold steady. When comparing the resale market from December 2023 to December 2024, total sales were down slightly by 23%, primarily due to a drop in demand for one- and two-bedroom condos. Higher interest rates have kept many investors, first-time homebuyers and young professionals on the sidelines. However, recent rate decreases have started to bring buyers back into the market, although the recovery is happening at a slower pace than initially expected. In the condo market, subdued demand over the past year has resulted in one of the lowest absorption rates for new pre-sale projects in recent history. While this has created a temporary lull, it could lead to challenges in the medium-to-long term, as the limited supply of new pre-sale projects suggests a potential future shortage. This presents a valuable opportunity for buyers seeking high-quality, well-located properties in communities poised for growth. Despite the economic challenges the region has faced – from the 2008 financial crisis to the pandemic five years ago – Metro Vancouver real estate has consistently proven its long-term value. As I always tell my clients, block out the noise, invest in the best real estate and hold it for the long term – your future self will thank you. Entry-level townhomes declined month-over-month, but rose year-over-year. Despite a 37% monthly decline, newer townhome sales rose 14% year-over-year, signaling a slight return of end-user and young-family buyers seeking more space. As single-family homes become increasingly out of reach for many, demand for townhomes is likely to continue to grow. However, while demand increases, limited development of new townhome projects may put upward pressure on prices as Millennials and Gen Y enter their prime home-buying years. Active listings increased 34% year-over-year, shifting the market from last year's strong seller's dominance towards a market that favours buyers. Given the seasonality that December brings, and the continued wait-and-see approach buyers are taking with interest rates, these conditions may not persist for long. Current market conditions may present a favorable opportunity for townhome buyers. In November, median townhouse prices ranged from $823,750 in Willoughby, Langley, to $1.73 million in Westside Vancouver. One-bed condo sales were down compared to last year. Newer one-bedroom condo sales in December 2024 were down 28% compared to the previous year, as demand from first-time home buyers and investors remains relatively subdued. Listings were up by 26% compared to the same period last year. The median list price of available one-bedroom condos ranged from $465,000 in Surrey City Centre to $689,000 in Downtown Vancouver. The one-bedroom condo market is currently a buyer's market, except in East Vancouver and Richmond, where inventory decreased by 21% and 19%, respectively, leading to a seller's market in those areas. As interest rates continue to return to the neutral zone, you can expect sales activity to increase for this entry-level market. In December, newer one-bedroom median sale prices ranged from $457,500 in Surrey City Centre to $740,000 in Downtown Vancouver.

Written by: Buffini & Co Owning a home has long been a cornerstone of the Canadian Dream. Although the real estate market has shifted over the last century, homeownership continues to be a goal many hope to ultimately achieve. 1914 - 1918

• Workers flocked to cities to work in war-related industries.
• There was insufficient housing for this rise in population.
• Building materials diverted to the war effort contributed to shortages.

1930 - 1960

• The Great Depression's widespread unemployment resulted in low homeownership.
• 1944's National Housing Act helped homeowners with mortgage insurance and low-income housing.
• Suburbia grew in the 1950s as homeowners moved out of cities.

1970 to Today

• Increased immigration during the '80s and '90s contributed to higher demand for housing.
• The Canada Mortgage Housing Corporation implemented programs to help housing affordability.
• Homeownership rate has hovered around 68% since 2019.

 

Buying or Selling a Home in 2025?

Preparing ahead of time as much as possible will help make the process go smoother. If you're looking to buy

• Get preapproved by a qualified mortgage lender.
• Start a designated down payment account.
• Hold off on other major expenses.

If you're looking to sell

• Start getting organized and declutter.
• Spruce up your curb appeal.
• Make needed repairs and cosmetic updates.

If you're a renter

• The number one thing you can do is improve your credit by paying down debt.

Written by" Kevin Skipworth of Dexter Realty It’s a new year, but one with the anticipation of continued interest rate reductions. The Bank of Canada meets again on January 29th, following their rate cut of 50 points in December. With a month of political and economic headwinds to come, the 25-point drop that’s currently expected could see more swings than the Vancouver Canuck’s season so far. Unfortunately, the new year also brought a new round of legislation for British Columbia property owners to navigate. On January 1st, the provincial government’s flipping tax came into effect. Anyone who sells a property within one year of purchasing, starting January 1st for any sales, could be taxed 20% on any profits with that tax declining in the second year to zero. This is in addition to the federal tax that came into effect in 2023 which taxed any profits as income for properties sold within one year. This new provincial tax targets not just resales but presales and the assignment of them as well. Certain life event exemptions may apply. It remains to be seen whether the provincial government will double the Speculation and Vacancy Tax in 2025 on properties as promised during the election. Just a few things for buyers and sellers to navigate this year. The question is: how active will buyers be as we venture into a year with economic and political uncertainty still ahead?  

Sales saw a final-quarter spike in 2024 versus other years.

There were 1,765 properties sold in Greater Vancouver in December after, 2,181 properties sold in November, 2,632 properties sold in October, and 1,852 sold in September. Fourth quarter sales in Greater Vancouver were 30% higher than the fourth quarter of 2023 and 36% higher than the fourth quarter of 2022. Some areas around Metro Vancouver experienced a greater number of sales in December than in November, such as Richmond and New Westminster. Meanwhile, Pitt Meadows, Maple Ridge and Aldergrove saw sales in December right near the totals for November. With the Bank of Canada rates coming down, buyer activity increased. The Bank of Canada’s final rate announcement for 2024 produced another jumbo rate cut of 50 points, which pushed some buyers to jump back into the market last month. This buyer re-engagement trend is likely to continue as January comes out of the holiday season mode. The question is: how active will buyers be as we venture into a year with economic and political uncertainty still ahead? That was supposed to be a 2024 problem but with the US government change and a federal election in Canada (at some point), politics could play a role in real estate and the economy. Sales in December were a 31% increase from the 1,345 properties sold last year and a 35% increase from the 1,303 sales in December 2022. As interest rates likely come down further, albeit at a slower pace in 2025, buyers won’t face the same spectre of obtaining mortgages at much higher rates then they experienced in the last two years. That led to more activity last fall compared to the last few years and as the spring market approaches, it will have an impact on how the real estate market plays out this year. There is more optimism and opportunity in the real estate market, especially with new mortgage rules that took effect in December allowing for presale buyers to amortize their mortgage over 30 years and increasing the threshold for insured mortgages to $1.5 million. The provincial flipping tax, which started on January 1st, may keep some sellers on the sidelines as they wait out the two-year period. And for those buyers looking to purchase a property and renovate, they may think twice. Not great for those other buyers who would prefer purchasing a renovated property. Greater Vancouver sales in December were 12% below the ten year average after November sales were 13% below the ten year average and October sales were 5% below the ten year average – all of which was far better than September and August where total sales were 26% below the ten year average. For a December that is typically the slowest month of the year for real estate activity, there was a surprising amount this year. Just ask some real estate agents that had offers come in on New Year’s Eve. Overall, total sales for the year were 26,560 in Greater Vancouver. This was slightly ahead of 2023 when 26,249 homes sold but still less than the 29,227 sales in 2022 – although 2022 saw 65% of the year’s total sales in the first six months prior to the start of rate hikes that year. In 2023, 55% of total sales were in the first half of the year while 2024 was more balanced with 52% of total sales in the first half. This showed that momentum in the market was picking up as the second half of the year moved on.  

New listings dropped in December.

In Greater Vancouver due to the holiday season, the number of new listings declined in December. There were 1,737 new listings in December, which were down 54% compared to November but up 35% compared to the 1,303 new listings in December of last year. Sellers and buyers were far more active than we’ve seen in the last three years for the month of December. And with 1,300 listings having expired at the end of December and others taking their properties off the market over the holidays, some will come back on in January and February as market conditions continue to improve. The total number of new listings in 2024 came in at 60,386 which was up significantly from the 50,883 in 2023 and the 55,028 in 2022. This was still fewer than 2021 when 63,711 new listings came out due to that year having one of the most active years on record for real estate sales. The number of new listings in December were right at the ten year average after November was 5% above the ten year average, October 20% above the ten year average and September at 16% above. So, while we did see more listing activity in 2024, we saw that wane as the year went on. As the inventory of homes crept up through the year, some sellers were not keen to adjust prices to meet the expectations of buyers and the reality of more competition. The wait until 2025 and lower rates may have entered the minds of some sellers as the fall market moved on. Buyers certainly hope to see more listings come on in 2025 to give more buying choices with these lower interest rates.  

Active listings came down again.

There were 10,948 active listings in Greater Vancouver at month end, compared to 13,245 at the end of November. After several listings expired at the end of December and others came off through the month of December, January started with just over 9,600 active listings. This was 23% above the total active listing count at the start of 2024. While above last year, that difference had grown to 46% year-over-year in May 2024. While buyers had more choice through 2024, that choice diminished as the year went on. Will we see it grow again in 2025? Perhaps not to the same level but more choice would lead to more transactions and keep price growth limited. Months of supply overall stayed steady at six in Greater Vancouver. The detached market in Greater Vancouver was the same at eight months’ supply compared to November while townhomes remained at four months’ just below the condo market at five months’ – bordering on a seller’s market while townhomes are firmly entrenched in a seller’s market. North Vancouver, Richmond, Burnaby, New Westminster, Port Moody, Port Coquitlam, Maple Ridge, Abbotsford and Cloverdale range from two to three months’ supply and Pitt Meadows with one month’s supply. Townhome sales in December in the region were up 55% compared to December last year, showing what was on buyers’ shopping lists for this holiday season. Detached homes saw a 31% increase in sales year-over-year while condos were up 23%. The condo inventory is up 30% year-over year, while townhomes are up 23% and detached homes are up 20%. There is more opportunity in the condo market for buyers, some areas more so than others. That means it’s a good opportunity for first time buyers and investors and shows why it’s important to understand each market. Signs are pointing to an improved real estate market in 2025. More transactions will occur, and prices will be impacted by the number of property listings. Who is more active in 2025 will direct where prices go – if there are more buyers than sellers then we’ll see more pressure on prices. There is pent up demand in the market, and arguably pent up supply. But with many new home developments on hold or not viable in current market conditions, supply in the next two to five years will continue to be a challenge. Rental prices are declining, in part due to the supply of new rental buildings being built and economic conditions making it challenging for renters. It’s been a while since landlords have had to compete for tenants, and with a decrease in federal immigration targets, that could continue. The story of 2025 is yet to be written, but like the previous years in this decade, it is bound to be an interesting one again.  

Written by: Dr. Sherry Cooper & Associates

Good News On The Inflation Front

The Consumer Price Index (CPI) rose 1.9% year-over-year (y/y) in November, down from a 2.0% increase in October. Slower price growth was broad-based, with prices for travel tours and the mortgage interest cost index contributing the most to the deceleration. Excluding gasoline, the all-items CPI rose 2.0% in November, following a 2.2% gain in October. Prices for food purchased from stores rose 2.6% year over year in November, down slightly from 2.7% in October. Despite the slowdown, grocery prices have remained elevated. Compared with November 2021, grocery prices rose 19.6%. Similarly, while shelter prices eased in November, prices have increased 18.9% compared with November 2021. Monthly, the CPI was unchanged in November, following a 0.4% increase in October. On a seasonally adjusted monthly basis, the CPI rose 0.1%. Year over year, gasoline prices fell slightly in November (-0.5%) compared with October (-4.0%). The smaller year-over-year decline resulted from a base-year effect as prices fell 3.5% month over month in November 2023. Monthly gasoline prices were unchanged in November. The shelter component grew slower in November, rising 4.6% year over year following a 4.8% increase in October. Yearly, rent prices accelerated in November (+7.7%) compared with October (+7.3%), applying upward pressure on the all-items CPI. Rent prices accelerated the most in Ontario (+7.4%), Manitoba (+7.9%), and Nova Scotia (+6.4%). Conversely, the mortgage interest cost index decelerated for the 15th consecutive month in November (+13.2%) after rising 14.7% in October. The mortgage interest cost and rent indices contributed the most to November’s 12-month all-items CPI increase. The central bank’s two preferred core inflation measures stabilized, averaging 2.65% y/y in October and November. Both core inflation measures rose a solid 0.3% m/m in seasonally adjusted terms and are up at a 3+% pace over the past three months. Excluding food and energy, the ‘old’ core measure dipped to 1.9%y/y, its first move below 2% in more than three years. Bottom Line This was a mixed report, with headline inflation and the old core indicator dipping to 1.9%, but the Bank of Canada’s preferred measures of core inflation remained sticky at an average of 2.65% y/y. The Bank had been expecting core inflation to average 2.3% for Q4. The mixed news on the inflation front validates the Bank’s intention to ease monetary policy more gradually, in 25 bp tranches, rather than the 50 bps cuts on the past two decision dates in October and December. The deepening decline in the Canadian dollar- now at 0.6988 cents relative to the US dollar- is another reason for the reduction in rate cuts. The overnight policy rate is still likely to fall from 3.25% today to 2.5% by the Spring. It will decline even further if the economy stalls and unemployment rises further. The overnight rate was at 1.75% before the pandemic.

Written by: Buffini & Co As mortgage rates lower, the real estate market typically becomes more competitive. Working with a qualified professional real estate agent helps you get into the home of your dreams. Buying a home? A buyer's agent will...

• Connect you with a lender.
• Take the time to listen and understand your priorities.
• Scout and recommend properties.
• Arrange and attend property inspections after your offer is accepted.

Selling a home? A listing agent will...

• Conduct a Comparative Market Analysis.
• Advise you how to prepare your home for listing.
• Competitively price your home to sell.
• Create a comprehensive home marketing plan.

Whether you're buying or selling, a professional real estate agent will...

• Negotiate the best deal to get the price and terms you want.
• Provide complete transaction management.
• Keep you informed every step of the way.
• Have a robust database of referrals to other service professionals.

Homework for the Holidays

The holidays can be hectic, but you may find you have pockets of time where you can talk with family and friends about buying or selling a home. Spring is anticipated to be a competitive time - you don't want to get left behind! Getting Ready to Buy?

• Check your credit scores.
• Review your finances and set a budget.
• Research the process of getting preapproved.

Getting Ready to Sell?

• Decide when you would like to sell your home (time of year, personal schedules etc.)
• Start a list of small repairs you can do yourself.
• Start decluttering.

For Both Buyers and Sellers

• Create a wishlist of "must-haves" and "nice to have" for your next home.
• Start researching areas where you might want to live.