The Bank of Canada announced on June 4 that it is holding its key interest rate steady at 2.75%, marking the second consecutive policy meeting with no change to the rate. The decision reflects a cautious stance amid ongoing economic uncertainty, with the central bank choosing to adopt a “wait-and-see” approach. The next scheduled interest rate announcement is set for July 30, 2025.
Factors Behind the Decision
The Bank of Canada highlighted several factors influencing its decision to hold rates steady. Chief among them are ongoing trade tensions with the United States, which have created an atmosphere of uncertainty for Canadian businesses and exporters.
Additionally, while the Canadian economy has shown signs of softness, the downturn has not been severe enough to prompt immediate monetary easing. Inflation, meanwhile, remains somewhat firm — enough to prevent the bank from moving too aggressively toward rate cuts.
Market Outlook
Investors and analysts will be watching the Bank’s next move closely on July 30 for any shifts in tone or policy direction. Until then, the Bank of Canada appears committed to a cautious path, trying to navigate an uncertain global and domestic landscape without fueling inflationary pressures.
Guelph Condo Update
Sales volume for June (52) increased 23% from May but was down 56 % year over year. The average sale price for Guelph condos $600,302 increased 6% from the previous month and the average time on market decreased 17% to 33 days. Buyers paid 98% of asking price on average and 9.6% of condos actually sold over asking price.
The number of listings that were terminated without selling (70) increased 40% from May. Going into July, there are 257 active condo listings which is a slight increase from May but still represents 5 months-worth of inventory at the current rate of sales.
The condo market has shown a little improvement since last month, but still has a long way to go. It looks like any significant rebound will be long and gradual although I’m not convinced that is ready to happen. Lower home prices and interest rates may be what’s needed to really ignite the market.
