TD Canada Trust provides a weekly economic highlight report that we choose to share with our clients and those who follow us. This is an easy place to stay current on the broader economic conditions in Canada and the U.S. so that you are better informed to make stronger decisions around your own real estate investments. We are always available to answer any questions or walk through your real estate investment goals for now or in the future.
- Canada’s housing market showed further signs of stabilization in April with home sales rising 3.6%. Still, the market is highly fragmented between east and west. Activity is weak and relatively oversupplied in markets west of Ontario, but strong and relatively tight in Ontario and eastward.
- The Bank of Canada released its annual Financial System Review this week outlining its assessment of vulnerabilities to financial stability. Little surprise, the level of household debt topped the list. However, with slowing credit growth and tighter mortgage lending conditions this vulnerability was characterized as moderating relative to previous years.
- Inflation ticked up to 2.0% in April as energy prices advanced. Core inflation measures, on the other hand, ticked down, and on average are running just below the Bank of Canada’s target.
- Equity markets rebounded this week as the U.S. administration delayed its decision on auto tariffs for six months.
- Housing starts and retail sales data for April support the narrative of healthy domestic spending this quarter.
- That said, externally oriented industries appear to be getting caught in the downdraft of weak foreign demand. Formerly resilient, U.S. manufacturing activity has softened this year, in line with global developments.