The Bank of Canada maintained its overnight policy rate at 2.25% today, citing persistent headwinds from U.S. trade restrictions and general market uncertainty. With population growth cooling and businesses adapting to new trade realities, the Bank anticipates modest economic expansion of 1.1% in 2026 and 1.5% in 2027. Inflation is projected to remain near the 2% target over the next two years, as economic slack balances out trade-driven price pressures.

While strong data from late 2025 initially sparked talk of a 2026 rate hike, global factors—including a weaker U.S. dollar and fresh tariff threats from the Trump administration—make tightening highly unlikely this year. We expect the Bank to remain on hold throughout 2026.

The US Fed also held rates today in its announcement.

The BC Real Estate Association's economist Brendon Ogmundson his had this insight

“Despite some resilience against global uncertainty, both the economy and housing market struggled through 2025, However, with mortgage rates expected to remain steady and significant pent-up demand following over two years of below-average activity, we expect demand to steadily come off the sidelines to strengthen home sales this year.”

Happy New Year! As we step into 2026, the Metro Vancouver real estate market is presenting a unique landscape. 2025 was a year for the history books, seeing the lowest annual sales total in over two decades. Total sales finished the year down 10.4% from 2024, a shift that has created a significant increase in available inventory. There are currently 12,550 homes listed for sale—nearly 35% above the 10-year seasonal average—offering a wealth of selection we haven’t seen in years.