Bank of Canada Holds Rate at 2.75% – What It Means for Fraser Valley & South Surrey Buyers

June 5, 2025 – The Bank of Canada has announced that it will hold its key interest rate at 2.75%, signalling cautious optimism while monitoring inflation and economic stability. While the rate remains unchanged for now, real estate professionals and economists alike agree — this could be the turning point that brings renewed confidence to buyers and sellers across the Fraser Valley and South Surrey markets.

What Happened: Key Takeaways from the Rate Decision

• Overnight Rate Held at 2.75%

• Inflation Still Sticky: Core inflation rose to 3.15% in April, the fastest pace in a year.

• Strong Q1 Growth: GDP increased by 2.2%, beating forecasts, but Q2 is expected to slow.

• BoC Signals Caution: Governor Tiff Macklem emphasized they’re watching economic indicators carefully before making future cuts.

Insights from Economists

Doug Porter (BMO)
The hold was expected, but future cuts will depend on inflation cooling off.

Avery Shenfeld (CIBC)
Predicts the BoC could cut as early as July if inflation trends down and job growth slows.

Leslie Preston (TD Economics)
Warns of a possible recession by late 2025, which could fast-track lower rates.

Real Estate Outlook: A Window of Opportunity

✔ Buyers: Confidence is Returning

As mortgage lenders anticipate future cuts, fixed mortgage rates are already softening. With more homes on the market and less competition, it’s a strategic time to re-enter.

✔ Sellers: Price Right and Stay Competitive

With high inventory across the Fraser Valley and White Rock/South Surrey, well-priced homes are still selling. If rates drop further, expect increased buyer activity.

✔ Investors: Time to Reassess

Lower borrowing costs could mean better cash flow for rental properties. With inventory up, now’s the time to look for value buys.

📊 Market Conditions Snapshot

In White Rock & South Surrey:

• Inventory is at a 10-year high

• Benchmark home prices have cooled

• Sales-to-active ratio remains in buyer’s market territory (11%)

Final Word from Omeed Ghafori

While the BoC’s hold might seem uneventful on the surface, it sends a message: We’re nearing the bottom of the rate cycle. For buyers, this could be the last stretch of higher rates before affordability improves. For sellers, it’s time to position your property wisely and attract motivated buyers while inventory remains high.

Thinking of buying or selling in White Rock, South Surrey, or the Fraser Valley? Let’s talk strategy.

Omeed Ghafori
Fraser Valley Real Estate Specialist
📞 778-316-7506
🌐 www.OmeedGhafori.com
📍 Century 21 Coastal Realty

Helping you buy and sell with confidence in any market.