June 4, 2025 Yesterday, the Bank of Canada chose to maintain its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%.
In the accompanying statement, the BOC said, “With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts. We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from the higher costs.”
In May, the benchmark value for a single-family home in the Victoria Core increased 1.3% from May 2024 to $1,326,600. While total sales were much the same as May 2024, sales of condos decreased 6%. Listings have increased 11.3% since May 2024 with special emphasis on the condo market. In the luxury market over $4 million, we have seen a steady increase in listings over the past month with more than 30 new listings on the MLS. There is currently a total of 78 listings over $4M in Greater Victoria.
A recent report from financial service co-operative Desjardins states that home-buying affordability is “unlikely to improve meaningfully” over the next two years. The report adds that over the past 25 years, home prices in Canada have ballooned four times while disposable income has only slightly more than doubled. According to the report, due to high rent inflation between 2022 and 2024, it now takes British Columbians an average of 7.5 years to save a 20% downpayment.
The new GST exemption for first-time homebuyers on new homes up to $1 million may lead to increased demand, which could then drive-up selling prices, the Desjardin report added.
If you are wondering what a luxury home might cost you in Nova Scotia, please don’t hesitate to reach out to our family member, Kari MacLeod, who knows that market well. You can check out Kari’s website at www.karimacleod.com or email her at kari.macleod@sothebysrealty.ca.
As summer beckons, we hope that you are able to get out and about to enjoy the wonderful weather we are experiencing.
Best wishes,
Glynis and Kirsten