The Bank of Canada's decision to keep its benchmark interest rate at 2.75% on June 4, 2025, marks the second consecutive hold after a series of rate cuts totalling 225 basis points over the past year. This pause comes amid a complex economic landscape characterized by rising core inflation and uncertainties stemming from U.S. trade policies.

Implications for Buyers:

• Mortgage Affordability: With rates holding steady, borrowing costs remain relatively low, providing an opportunity for buyers to secure favourable mortgage terms.

• Increased Inventory: The Niagara region currently has over 3,000 homes on the market, offering buyers a wider selection and greater negotiating power.

Implications for Sellers:

• Strategic Pricing: In a market where buyers have the upper hand, it's crucial for sellers to price their homes competitively to attract interest.

• Home Presentation: Well-maintained, move-in-ready homes are more likely to stand out and receive offers in a market with abundant choices.

Looking Ahead:

While the Bank of Canada has signalled a cautious approach, future rate cuts are possible if economic conditions warrant. For those considering entering the market, staying informed and working with knowledgeable real estate professionals is key to making sound decisions.