We hope this newsletter finds you well—and perhaps not too distracted by recent fluctuations in your investment portfolio. Toronto’s real estate market remained soft in March 2025. Total residential transactions declined by 17% compared to March 2024, with condominium apartment sales particularly weak, falling 22% year-over-year. Notably, March 2024 was itself a subdued month, making the 35% drop in sales compared to the five-year March average (2020–2025) all the more significant.

Despite a 31% increase in new listings, average home prices held steady year-over-year. In the condominium segment, where inventory has grown to six months, prices declined as buyers were presented with a wide range of options. In contrast, freehold properties showed more price stability, even amid over three months of available inventory.

The volatility in equity markets last week, driven in part by evolving U.S. tariff policies, served as a reminder of the broader economic forces at play. Given Canada’s deep economic ties to the U.S., ongoing trade and political tensions have weighed heavily on consumer confidence. Although polling data indicates there is significant pent-up demand in the housing market, ongoing concerns around job security and macroeconomic uncertainty continue to keep many potential buyers on the sidelines.

Amid this cautious sentiment, one key development has quietly improved housing affordability: declining interest rates. Over the past 12 months, the Bank of Canada has lowered its policy rate seven times—from 5.0% to 2.75%.

The following breakdown illustrates how affordability has evolved between March 2024 and March 2025 in Toronto’s detached and condominium apartment markets:

Detached home prices rose modestly by $15,053 over the past year, resulting in an increased down payment requirement of $3,011 (based on 20%). However, this was more than offset by savings in mortgage payments. A 95-basis-point reduction in 5-year fixed mortgage rates translated into monthly savings of $667, or $8,024 annually. For variable-rate mortgages, the savings is 15% compared to a year ago where a 175-basis-point drop resulted in $1,333 in monthly savings ($15,996 per year).

Affordability improvements were even more pronounced in the condo segment. Lower prices reduced the required down payment by $2,586. At the same time, 5-year fixed-rate mortgage holders are saving $4,380 annually (ie. 11%), while variable-rate holders are benefiting from $7,836 (ie. 17%) in annual savings.

Will these affordability gains be enough to bring hesitant buyers back into the market? While geopolitical uncertainty and stock market turbulence continue to dominate the headlines, many sectors of the economy—particularly healthcare and the broader public sector—remain relatively insulated. Moreover, polling conducted in 2024 (prior to the onset of current trade tensions) suggested that a 200-basis-point drop in interest rates would catalyze buyer re-engagement—a threshold that will likely soon be reached.  So while the trade war presents strong headwinds for the market, a small tailwind is developing of improving affordability can help push the real estate market back to normalcy.

Shen Shoots the Breeze

Some of you have asked me to share tips on how to improve your cooking results. While I’m not a professional chef, I’ve spent a lot of time in the kitchen and picked up some useful habits along the way. Here are a few that have made a big difference for me:

1. Taste as You Go
   Many home cooks stick rigidly to a recipe and expect perfect results.  However, not all recipes are created equal. Some may be poorly written, or the author might assume a certain level of technique without stating it outright. That’s why it’s essential to taste your food at each stage. Sometimes it needs more seasoning or spice—adjust as you go.
2. Use More Salt (The Right Kind)
   Don’t be afraid to season your food. Most home cooks tend to under-salt, which can make a big difference in flavour. I’m less concerned about salt at home since homemade meals are generally healthier than takeout or processed foods, which are often loaded with sodium. As the Bible says, “Let your conversation be always full of grace, seasoned with salt…”—and the same goes for your food. Skip the table salt and use kosher salt instead. Note that different salts have varying levels of salinity. I prefer Diamond Crystal kosher salt because it’s less salty and more forgiving.
3. Use the Right Size Cookware and Don’t Overcrowd
   Make sure your cooking vessels are appropriately sized. For pasta, use a large pot so it can move freely. When roasting meat or vegetables, avoid overcrowding the pan—otherwise, your food will steam instead of roast, and you won’t get that beautiful caramelization and colour you’re aiming for.
4. Plan and Schedule Your Cooking
   If you’re preparing multiple dishes, especially for an event, make a schedule. Timing is everything. While water is boiling, prep your vegetables. Think about what you can make ahead of time and freeze. For Thanksgiving, I make the cranberry sauce days in advance and prepare the stuffing the day before. That way, on the day of, I’m only making 2–3 dishes instead of 6 or 7.
5. Keep It Simple
   My economics teacher used to say: KISS – Keep It Simple, Stupid. You’ll be more successful focusing on 2–3 dishes done well rather than 5–6 that are just okay. It’s less stressful, and it allows you to perfect that spaghetti sauce rather than spreading yourself thin trying to deliver a multi-course meal.
6. Master the Rules, Then Break Them
   Once you’re confident following a recipe and consistently getting good results, start experimenting. Swap out proteins or vegetables, try a new spice blend—be creative. You might develop 5–6 new variations from a single recipe. Just don’t change everything at once—start with one or two modifications and see how they go.
7. Don’t Apologize
   If a dish doesn’t turn out exactly as planned, serve it anyway. Most of the time, your guests won’t even notice. We’re not running a restaurant, and perfection isn’t a requirement for a good dinner party. What matters is opening your home, sharing a meal, and enjoying good company. Your guests are likely just happy to be invited—and to be fed!