Market Snapshot: Cautious Optimism for Buyers

At its latest meeting, the Bank of Canada kept its benchmark interest rate unchanged at 2.75% — the second hold in a row after seven rate cuts over the past year. The Bank is taking a cautious approach due to global trade uncertainties and rising inflation risks. Mortgage rates have been on a downward trend since late 2024, with the Bank of Canada’s overnight rate dropping from 5.00% last year to 2.75% by March 2025. Lower borrowing costs are helping bring some buyers back into the market, with fixed rates now in the mid-4% range offering relief — though affordability remains a key challenge for many.

The new First-Time Homebuyers GST Rebate on newly built homes took effect for purchase agreements signed on or after May 27. While this could attract more first-time buyers, it will take time before these projects impact housing starts.

New listings rose slightly (up 3% from April) while inventory stayed steady. Regional differences remain: Quebec City hit a new price high, while Toronto and Vancouver, despite stronger sales, are still firmly in buyer’s market territory.

One strong month doesn’t make a trend, but with more inventory, softer prices and easing uncertainty, buyers could continue returning this summer — especially if the Bank of Canada cuts rates again in July.

Navigating BC’s housing market in 2025 can be challenging with ongoing affordability concerns. Our team provides expert guidance and access to a wide network of lenders to help clients secure the best mortgage rates and terms based on their unique situations. Clients and realtors are encouraged to reach out anytime to discuss how our team can support your home financing goals.