The net worth of Canadian households rose to over $17 trillion in the first quarter of 2025, based on the latest data from Statistics Canada. Home sales also picked up in May compared to April as trade tensions between Canada and the US seem set to ease, with global leaders meeting at the G7 in Alberta this week. The previous meeting between Canadian Prime Minister Mark Carney and US President Donald Trump last month seemed to have calmed some market sentiment.

• Canadian household net worth increased by over $141 billion in the first quarter. Financial assets expanded by 0.9%, rising for the sixth quarter in a row. But the household savings rate declined to 5.7% since spending increased more quickly than income.
• Home sales rose by 3.6% compared to April. However, compared to the same period last year, sales declined by over 4%. According to the Canadian Real Estate Association, the National Composite MLS Home Price Index declined by 0.2% in May compared to April.
• In an effort to address housing affordability, part of a proposed bill would remove the goods and services tax (GST) on new homes valued up to $1 million. The bill, if approved, could benefit roughly 8,000 households in 2025.
• Canada’s diplomatic strategy will be in view this week at the G7 summit in Alberta, Canada. Although Canada’s relationship with the US will be at the top of the agenda, meetings with other leaders, such as Indian Prime Minister Narendra Modi, signal Canada’s broad diplomatic attention.

Canada will host leaders from the US, France, Italy, Germany, the UK and Japan at the G7 summit, and global trade security was already high on the agenda before tensions escalated in the Middle East. Other guests besides Prime Minister Modi include Mexican President Claudia Sheinbaum, South African President Cyril Ramaphosa, South Korean President Lee Jae-myung, Australian Prime Minister Anthony Albanese, Brazilian President Luiz Inácio Lula da Silva and Ukrainian President Volodymyr Zelensky.

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