January 2025 – The Evans Real Estate Group Blog

How the Bank of Canada is Shielding the Economy from Potential U.S. Tariffs

The Bank of Canada’s recent Monetary Policy Report has caught the attention of many, especially with the looming possibility of new U.S. tariffs. Given our close economic ties with the U.S., such tariffs could have significant implications for our economy. But fear not—the Bank of Canada has a game plan to keep us on course.

The Tariff Talk

There’s been chatter about the U.S. imposing new tariffs on imports, which could directly impact Canadian exports in sectors like manufacturing, energy, and agriculture. If these tariffs come into play, we might see a slowdown in trade, businesses feeling the pinch, and potential fluctuations in the Canadian dollar. The Bank of Canada acknowledges these uncertainties and is gearing up to tackle them head-on.

The Bank’s Playbook

So, what’s the strategy? Here’s how the Bank of Canada is positioning us to weather potential storms:

Cutting Interest Rates
In January 2025, the Bank trimmed the target overnight rate by 0.25% to 3%. This move aims to make borrowing more affordable, encouraging businesses and consumers to keep investing and spending, even amidst trade uncertainties.
Keeping Inflation in Check
With inflation close to the 2% target, the Bank is maintaining price stability. This approach ensures that businesses can plan with confidence, knowing that sudden price hikes aren’t on the horizon.
Pausing Quantitative Tightening
The Bank has also hit the brakes on its quantitative tightening program. By maintaining its bond holdings, it ensures there’s ample liquidity in the financial markets, supporting lending and investment across various sectors.

Looking Ahead

While we can’t control U.S. trade policies, the Bank of Canada’s proactive measures are designed to keep our economy resilient. For businesses and investors, this approach offers reassurance that we’re equipped to handle potential challenges.

As always, staying informed and prepared is key. With the Bank’s strategies in place, Canada is well-positioned to navigate any uncertainties that come our way.

Feel free to share your thoughts or ask questions in the comments below. Let’s keep the conversation going!

Real Estate Sales

How PropTx is Changing the Game for Home Buyers and Sellers

At the Evans Real Estate Group, we’re always looking for ways to improve the home buying and selling experience for our clients. That’s why we’re excited about the recent introduction of PropTx, a cutting-edge platform now used by many REALTORS® in Ottawa, including our team. PropTx isn’t just a fancy new tool for agents—it’s designed to streamline the entire real estate process and deliver real benefits to home buyers and sellers. Here’s how:

For Home Buyers: Making the Process Smoother and More Transparent

Access to Real-Time, Accurate Information 🏡
PropTx integrates MLS® and land registry data, meaning buyers can trust the information they’re getting about homes on the market. Whether it’s the latest listing price, home features, or even neighborhood data, you’ll always have up-to-date details at your fingertips.
Smarter, Faster Communication 📲
The platform allows REALTORS® to communicate faster and more efficiently with buyers. This means fewer delays in receiving answers to your questions, scheduling viewings, or submitting offers. In a competitive market, speed can make a big difference!
Detailed Neighborhood Insights 🌳
Through integrated tools like HoodQ, buyers can get comprehensive neighborhood reports, including information on schools, parks, transit, and local amenities. Knowing what’s nearby can help you make a more informed decision when choosing a home.

For Home Sellers: Streamlining the Sale Process

Faster Offer Management 📄
With tools like SkySlope Offers, managing offers is easier than ever. Offers are submitted, tracked, and organized digitally, ensuring nothing gets missed. Sellers can review multiple offers quickly and easily, making it simpler to decide on the best deal.
Increased Visibility and Listing Performance 📈
PropTx includes tools like ListTrac, which tracks how much interest your property is generating. Sellers can see how many views their home is getting online and how well it’s performing compared to other listings in the area.
Compliance Made Easy ✅
Selling a home involves a lot of paperwork, including regulatory compliance. PropTx streamlines this process, ensuring that all forms and documents are handled correctly. This reduces stress and gives sellers peace of mind knowing everything is being done by the book.

The Evans Real Estate Group Advantage

At The Evans Real Estate Group, we’re committed to staying ahead of the curve when it comes to real estate technology. Our adoption of PropTx means we can offer our clients a faster, more transparent, and stress-free experience—whether you’re buying your first home or selling a property you’ve loved for years.

If you’re thinking about buying or selling in the Ottawa area, let’s chat! With the power of PropTx and our dedicated team, we’ll help you navigate the process smoothly and successfully.

Real Estate - ANALYSIS

Why Time in the Market Matters More than Timing the Market

The primary financial advantage of owning real estate is the equity you build as your mortgage is paid down. The longer you wait, the more time you lose to grow that equity. Even if rates drop, higher prices can erase any savings on interest. In many cases, those who wait to buy end up with less equity and fewer financial gains in the long run.

The Numbers: Buying Now vs. Waiting for Lower Rates

Let’s compare two scenarios:

Scenario 1: Buying Now

Home price: $700,000
Down payment: 20% ($140,000)
Mortgage amount: $560,000
Interest rate: 3.25%
Amortization: 25 years

Using these terms, the monthly mortgage payment is approximately $2,730. Here’s how much principal is paid down and equity is built over the first 30 months:

Month	Equity Built
6	$8,300
12	$17,000
18	$26,000
24	$35,400
30	$45,000

By month 30, you will have built $45,000 in equity, just from principal paydown. This doesn’t include any potential home appreciation, which could further increase your total equity.

Scenario 2: Waiting for 6 Months for Rates to Drop

Home price (after 6 months): $730,000 (a 4.3% price increase)
Down payment: 20% ($146,000)
Mortgage amount: $584,000
Interest rate: 2.75%
Amortization: 25 years

At the lower rate, your monthly payment would be about $2,686. However, because you waited 6 months, you only have 24 months left in this comparison. Here’s the equity built over the next 24 months:

Month	Equity Built
6	$7,800
12	$16,200
18	$25,100
24	$34,800

By month 30, you’ll have built $34,800 in equity, which is $10,200 less than if you had bought earlier at a higher rate. Even with a slightly lower monthly payment, the missed time for equity-building results in a smaller total gain.

Key Takeaways

Delaying your purchase means losing equity-building time. Even with a lower rate, the missed opportunity for principal paydown can cost you tens of thousands of dollars in equity over a short period.
When rates drop, prices typically rise. Ottawa’s real estate market tends to experience price surges when borrowing becomes cheaper, meaning any savings on interest are often offset by higher home prices.
Wealth in real estate comes from holding property long-term. The longer you own your home, the more equity you build through both principal paydown and potential price appreciation.

Final Thoughts

If you’re waiting for lower rates before buying your home in Ottawa, think carefully about the true cost of waiting. The sooner you start building equity, the better your long-term financial position will be. With the right strategy—and a trusted real estate advisor—you can navigate today’s market confidently and make a smart investment in your future.

If you have questions about whether now is the right time to buy or sell, contact us at Evans Real Estate Group. We’re here to help you make informed decisions that build lasting wealth.