Canadian retail sales decreased by 0.8 per cent to $69.6 billion in July compared to the previous month. Compared to the same time last year, retail sales were up by 4.0 per cent. Furthermore, core retail sales, which exclude gasoline and automobile items, were down 1.2 per cent month-over-month. In volume terms, adjusted for rising prices, retail sales decreased by 0.8 per cent in July.

Retail sales in British Columbia were down 0.8 per cent in July from the previous month and rose by 7.6 per cent compared to the same time last year. In the CMA of Vancouver, retail sales were down 1.6 per cent from the prior month and were 8.9 per cent above the level of July 2024.

July's report contributes to a broader trend of sizeable monthly volatility in Canadian retail sales, with retail activity decreasing in eight out of nine major subsectors compared to June. Moreover, weakness in core retail sales may be indicative of a weakening Canadian labour market and economy as households adapt to a dimmer outlook for the year's final quarter. After cutting the overnight rate earlier this week, the Bank of Canada will monitor how core inflation and growth evolve before forming a policy stance for its meeting in October.

https://mailchi.mp/bcrea/canadian-retail-sales-july-2025

For more information, please contact: Gino Pezzani.

Canadian housing starts decreased 16 per cent from the previous month, totalling 245,791 units in August at a seasonally adjusted annual rate (SAAR). Starts were up 15 per cent from the same month last year. Single-detached housing starts decreased by 2 per cent from last month to 55,271 units, while multi-family and other starts decreased by 20 per cent to 190,519 units (SAAR).

In British Columbia, starts fell by 19 per cent from last month to 46,274 units (SAAR) in all areas of the province. In areas of the province with 10,000 or more residents, single-detached starts increased by 7 per cent to 4,284 units, while multi-family starts fell by 22 per cent to 39,480 units month-over-month. Starts in the province were 34 per cent above the levels from August 2024. Year-to-date starts are up 150 per cent in Abbotsford and 31 per cent in Victoria, but down 56 per cent in Nanaimo, 37 per cent in Kelowna, and 0.6 per cent in Vancouver.

For more information, please contact: Gino Pezzani.

Canadian prices, as measured by the Consumer Price Index (CPI), rose 1.9 per cent on a year-over-year basis in August, up from a 1.7 per cent increase in July. Month-over-month, on a seasonally adjusted basis, the CPI was up 0.2 per cent in August. The CPI ex-gasoline increased by 2.4 per cent in August after holding at 2.5 per cent during each of the previous three months.  Additionally, shelter price growth was 2.6 per cent in August, the smallest year-over-year increase since March 2021, and down from 3.0 per cent in July. Food price growth registered at 3.4 per cent year-over-year, marginally higher than the previous month. In BC, consumer prices rose 1.8 per cent year-over-year in August, up from 1.7 per cent in July. The Bank of Canada's preferred measures of median and trimmed inflation, which strip out volatile components, remained at 3.1 per cent and 3.0 per cent year-over-year, respectively.

While the Bank of Canada's core measures of inflation have remained at the upper end—and even outside of—their target range, 3-month annualized core inflation has stabilized around 2.5 per cent. Coupled with weaker-than-expected second-quarter growth, this report is unlikely to sway the Bank of Canada away from a likely rate cut tomorrow in hopes of stimulating the economy heading into the final quarter of the year.

https://mailchi.mp/bcrea/canadian-inflation-august-2025

For more information, please contact: Gino Pezzani.

The Bank of Canada lowered its overnight policy rate to 2.5 per cent this morning. In its statement, the Bank noted that US tariffs sharply impacted Canadian export levels while also hindering business investment. In spite of resilient consumer spending, GDP declined by about 1.5% in the second quarter, aligning with the Bank's most recent projection. In addition, the Canadian labour market has cooled further through the summer, with the national unemployment rate reaching 7.1 per cent, its highest level since May 2016, excluding the pandemic. Regarding inflation, the Bank noted that the upward pressure on month-over-month core inflation growth is dissipating, which, coupled with the de-escalatory behaviour from our government, reduces the overall inflationary risks associated with trade policy moving forward.

Taken together, the Bank of Canada signalled a tangible shift in policy rate considerations, emphasizing weak economic growth in conjunction with stabilized inflation as a backdrop to lower rates. However, the Bank expressed continued caution and vigilance regarding its outlook due to the lingering uncertainties associated with US tariffs and their risks to Canada's export potential. Financial markets are now shifting attention towards what the Bank will do before the end of the year, with many economists believing that tempered inflation and prolonged weakness in the economy will result in an additional 25-point cut, bringing the policy rate to 2.25% by year-end. These expectations are reflected in 5-year bond yields, which have stabilized around 2.71%, down about 0.4 points from their summer peak.  This broader trend will place downward pressure on 5-year fixed mortgage rates, which we hope stimulates stronger sales activity to close out a weak year in the housing market overall.

For more information, please contact: Gino Pezzani.

During September 1937, the Eiffel Tower was reimagined not just as a marvel of engineering, but as a luminous beacon in the Paris night.

During the Paris International Exposition, the tower was illuminated from base to tip in a breathtaking display of electric lights that captured the world’s imagination.

Although the tower had stood since 1889, this night marked one of the first times it was fully lit after dark, which heralded a new age of modern lighting and nighttime urban design. For those fortunate enough to witness it firsthand, the scene was unforgettable.

This moment redefined the Eiffel Tower as a structure and as an experience. Parisians and visitors alike gathered in awe as it sparkled against the evening sky, setting the stage for a future where cities would glow after sunset.

From Times Square to Tokyo Tower, this new approach to illumination would ripple around the world.

Today, the Eiffel Tower’s nightly light shows remain one of Paris’s most-cherished sights. What began as an engineering feat has become a symbol of magic, imagination, and enduring beauty.

September has a way of making everything feel more grounded. The pace slows, routines return and even the air feels as if it’s urging us to reset. Whether you're easing out of summer travel or jumping back into a full schedule, this month’s newsletter is here to help you feel more centered.

I always aim to fill these pages with helpful ideas, thoughtful shifts and some inspiration to make life more enjoyable — at home and beyond.

And, of course, if you have real estate questions, want to refer a friend or need a trusted opinion about anything home-related buying or selling, then I’m always here for that, too.

Wishing you a cozy, clear-headed and beautiful September.

Warmly,

Gino Pezzani

As children, many of us learned this rhyme:

Make new friends but keep the old, one is silver and the other gold.

It’s actually a paraphrase of a quote by 19th-century Welsh composer Joseph Parry, and its message still rings true today.

It’s easy to assume that growing apart from oldfriends is just a natural part of life. And while that does
happen, it doesn’t have to. In fact, building friendships takes a surprising amount of effort—research published in the Journal of Social and Personal Relationships shows that it takes about 50 hours of time together for someone to move from acquaintance to casual friend, and around 200 hours to
develop a close friendship.

That’s a serious investment—and one worth protecting.

Yet many people hesitate to reconnect with old friends. In a study shared in Communications Psychology, social psychologists Lara B. Aknin and Gillian M. Sandstrom found that over 90% of people had lost touch with a friend, and most felt either neutral or uneasy about reaching back out.

As time passes, it seems, people begin to view their former friends almost like strangers.

But maybe that’s exactly why reaching out matters. Because behind the time and distance, those old friendships might still hold something golden.

For the complete news release, including detailed statistics, click here.

Vancouver, BC – September 2025 The British Columbia Real Estate Association (BCREA) reports that 5,961 residential unit sales were recorded in Multiple Listing Service^® (MLS^®) Systems in August 2025, up 0.5 per cent from August 2024. The average MLS^® residential price in BC in August 2025 was down 1.4 per cent at $926,335 compared to $939,376 in August 2024.

The total sales dollar volume was $5.5 billion, down 0.9 per cent from the same time the previous year. BC MLS^® unit sales were 24.2 per cent lower than the ten-year August average.

“We continue to see significant regional disparity in the market, with the Lower Mainland lagging behind the rest of the province,” said BCREA Chief Economist Brendon Ogmundson. “While sales finished the summer on a lower note than expected, we continue to see encouraging signs of a better second half of the year.”

Year-to-date, BC residential sales dollar volume is down 8.5 per cent to $46.3 billion, compared with the same period in 2024. Residential unit sales are down 5 per cent year-over-year at 48,842 units, while the average MLS^® residential price is also down 3.7 per cent to $949,157.

For more information, please contact: Gino Pezzani.