Property Valuation

The strong inflation reading for June was largely due to higher shelter and food prices, as well as goods that are more prone to higher tariffs. The shelter category of the CPI (Consumer Price Index), which includes housing costs, continued to be a significant and persistent driver of overall inflation. The shelter index increased 3.8% over the last year. However, there are emerging indicators that housing cost pressures may be easing.

While the March 2025 Consumer Price Index shows a welcome easing of overall inflation to 2.4%, the persistently high 4.0% year-over-year increase in shelter costs remains a significant obstacle for housing affordability. This sustained rise in housing expenses continues to strain household budgets and complicate the decision for many potential homebuyers in the current market.

Housing was expected to become affordable in 2024, but mortgage rates remained elevated, and prices continued to increase. While a brief decline in mortgage rates to 6.08% in September offered a glimmer of hope, rates subsequently rebounded to 6.85% by year-end.