The Vancouver real estate market has been changing recently due to various factors.
In particular, as the trade war between Canada and the United States intensifies, economic uncertainty is increasing.
In response, the Bank of Canada lowered the benchmark interest rate by 0.25 percentage points from 3.00% to 2.75% on March 12, 2025.
This marks the seventh consecutive rate cut since June of last year, driven by concerns that, despite economic growth, uncertainty caused by tariffs could negatively impact consumer spending and investment.
This interest rate cut is also impacting the real estate market.
Lower interest rates can reduce the mortgage burden for home buyers, potentially boosting housing demand.
However, economic uncertainty caused by tariffs may weaken investor confidence, making it difficult to predict the direction of the real estate market.
Additionally, while rental prices in the Vancouver area have been declining for 14 consecutive months, they still remain the highest in Canada.
As of January 2025, the average rent for condos and apartments in Vancouver was recorded at $2,896.
Experts advise closely monitoring changes in the real estate market under these circumstances, emphasizing the need to carefully observe how interest rate cuts and the trade war will impact the market.
Investors and home buyers should carefully analyze economic trends and changes in the real estate market to make well-informed decisions.
The next date for the Bank of Canada’s interest rate decision is April 16. Please refer to the table below for the full schedule.
Reference: Bank of Canada
https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate