Welcome to the latest episode of Make Money Count! As we enter 2025, the economic and real estate landscape brings both challenges and opportunities. In this episode, Marcus and Justin share their key predictions for the year ahead, offering clear insights into what could influence our economy, housing market, and political scene.
Why Predictions for 2025 Matter
Every year, experts analyze patterns and data to predict the economy, markets, and industries. In 2025, understanding these forecasts is especially important as the world continues to recover from economic challenges and navigates geopolitical shifts. Predictions are not guarantees but serve as guiding tools to anticipate and adapt to changes.
Major Influencers Shaping the Year
Two significant factors are shaping the outlook for 2025: US-Canada trade relations and Canada’s political landscape. The possibility of the United States imposing a 25% tariff on Canadian and Mexican goods has notably decreased, now standing at only 16%, compared to 41% just a month ago. This shift brings relief to businesses that would otherwise face disruptions in supply chains and increased costs. On the political front, Canada might experience significant changes, with predictions suggesting a high probability of Prime Minister Justin Trudeau stepping down before April. A transition to a Conservative majority government could bring new policies prioritizing economic growth, efficiency, and strengthened collaboration with the US. These developments could create a more stable and business-friendly environment in Canada, positively influencing the economy.
Real Estate and Interest Rates in 2025
The real estate market is poised for significant adjustments this year. The industrial real estate sector, which has seen rapid growth in recent years, now faces challenges due to elevated interest rates and overbuilding. This could lead to a period of stabilization as the market recalibrates to align with demand. In the residential sector, declining interest rates may renew confidence among homebuyers, prompting moderate growth in housing values. Interest rates are a central focus of 2025. Current projections suggest that the prime rate will decline to 3.95% by December. This anticipated decrease would provide relief to borrowers, especially those with variable-rate mortgages, and encourage renewed activity in both consumer spending and investments. The Bank of Canada’s cautious yet deliberate actions will likely be crucial in steering the economy toward recovery.
Broader Economic Impacts
Beyond real estate and interest rates, the broader economy remains in a state of cautious optimism. Many businesses are hesitant to commit to large-scale capital expenditures, given the lingering uncertainty about market conditions. However, improved trade relations with the US and a more stable domestic political environment could unlock growth opportunities, particularly in sectors such as technology, manufacturing, and services.
At the same time, challenges such as overbuilding in certain real estate markets and the potential for global economic disruptions must be carefully managed. Developers, investors, and policymakers need to remain agile and responsive to changing market dynamics to sustain progress.
2025 – A Year for Smart Choices
At Cannect, 2025 is a year for making informed, strategic financial decisions. Whether it’s investing in our high-return MIC or navigating the real estate market, we’re here to guide you every step of the way.
Let’s tackle 2025 together!
If you have questions or want to discuss your financial goals, don’t hesitate to reach out.
