On April 16, 2025, the Bank of Canada (BoC) held its overnight benchmark interest rate at 2.75%, following seven consecutive rate cuts since June 2024. While many anticipated another small cut to kick off the spring housing market, the central bank hit pause—choosing instead to evaluate how previous reductions are impacting inflation, economic growth, and consumer spending.

If you're a first-time home buyer, a homeowner planning to list, or just trying to time your next move, this announcement is significant. So, what does it really mean for you—and for the Edmonton housing market?

Let’s dig in.

🏦 Why Did the Bank of Canada Hold Rates?

According to BoC Governor Tiff Macklem, this pause is about patience, not panic.

"While inflation is easing, underlying pressures remain persistent. Global uncertainty, including U.S. trade disputes, continues to weigh on the Canadian economy."
— Tiff Macklem, BoC Governor (CBC News, April 2025)

🔍 The key reasons for the pause include:

• Core inflation is still above target, despite a slowdown in headline inflation (currently at 2.3% in March 2025).

• Tariff tensions with the U.S., a major trade partner, are creating economic unpredictability.

• Wage growth remains steady, which is good news for households—but makes inflation stickier.

The bank is taking a “wait and see” approach, giving previous rate cuts time to filter through the economy before adjusting again.

💸 What This Means for Canadian Mortgage Rates

When the BoC changes the overnight rate, it affects variable-rate mortgages and lines of credit almost immediately. But because rates were held steady, we can expect:

• No immediate change to variable-rate mortgages (which are tied to lenders’ prime rates).

• Slight movements in fixed rates may still occur, depending on bond yields and market sentiment—but don’t expect dramatic shifts.

For those shopping for a home, this decision buys you time. If you’re already pre-approved at a favourable rate, you likely won’t lose that edge—but you also don’t need to panic about a spike in borrowing costs.

💡 Pro Tip: If you're house hunting this spring in Edmonton, consider locking in a pre-approval to protect yourself from future rate or price fluctuations.

🏘️ How This Affects Canada’s Housing Market in Spring 2025

1. No Sudden Surge in Activity — Just a Balanced Spring

Unlike the aggressive seller’s markets of 2021 or early 2022, we’re entering a more balanced season. While buyer demand is improving (thanks to lower rates), economic uncertainty is still keeping some buyers on the sidelines.

Many Canadians are cautiously optimistic—but not rushing in.

According to the Canadian Real Estate Association (CREA):

• National home sales were down 2.1% in March 2025 compared to February.

• The average national sale price was $717,800, while Edmonton homes averaged $460,685 making our city far more accessible.

2. Inventory Is Rising—But Still Tight in Key Markets

Spring typically brings more listings—and we’re seeing that trend continue in 2025. However, it’s not enough to fully satisfy buyer demand, especially in popular Edmonton neighbourhoods like:

• Edgemont

• The Hamptons

• Secord

• Rosenthal

In these communities, homes are still selling quickly when priced correctly and marketed well.

3. First-Time Buyers Are Still Struggling With Affordability

Even with lower interest rates than last year, the cost of entry into the market remains high, particularly when you factor in:

• Rising insurance premiums

• Higher property taxes

• Increasing utility and maintenance costs

And while Canada doesn’t have land transfer tax at the federal level, Alberta does charge a land titles fee—a detail often overlooked by first-time buyers.

🧭 What Buyers and Sellers Should Be Doing Right Now

Whether you're buying your first home or thinking about selling your current one, the BoC rate decision should influence—but not control—your next steps.

🔑 If You're a Buyer:

• Get pre-approved now. Lenders are still offering competitive rates.

• Don’t delay due to fear. Waiting rarely results in significantly better timing—you’re more likely to miss out on properties that fit your needs.

• Understand your closing costs. Beyond your down payment, budget for lawyer fees, inspections, appraisals, and title insurance.

🏡 If You're a Seller:

• This is still a good time to list—particularly in Edmonton’s west-end communities where demand remains high.

• Work with a Realtor who markets aggressively. I offer:

  • Drone video tours

  • Custom property websites

  • Community feature videos

  • Social media strategy

  • Neighbourhood canvassing

• Staging, pricing, and presentation are more important than ever.

📊 According to Zoocasa, homes that are professionally marketed and priced accurately sell up to 50% faster in balanced markets.

📉 Will the Bank Cut Rates Later This Year?

Most economists agree that more rate cuts are likely later in 2025, especially if inflation continues to decline.

Upcoming BoC rate announcement dates to watch:

• June 4, 2025

• July 23, 2025

• September 3, 2025

If inflation returns to the 2% target and the global economy stabilizes, we could see the overnight rate drop below 2.5% before the end of the year.

📚 Frequently Asked Questions (FAQ)

Q: Will the BoC rate hold lower my mortgage payments?
A: Not immediately. If you’re in a variable-rate mortgage, your payments will stay the same. If rates drop again later this year, you could see your payments decline.

Q: Is this a good time to buy a home in Edmonton?
A: Yes, especially if you're a first-time buyer. Edmonton is one of the most affordable major cities in Canada, and rates are low compared to 2023. The key is to buy based on your budget and timeline, not the headlines.

Q: What does this mean for home prices in Edmonton?
A: Home prices are stable to slightly increasing. We’re not seeing dramatic spikes, but homes are still appreciating, especially in well-connected neighbourhoods with amenities and schools nearby.

Q: Should I wait for rates to drop further?
A: That depends on your goals. Waiting for a slightly lower rate could mean missing out on the right home or paying more if prices rise. Many buyers regret waiting in the past.

Q: How can a Realtor help in a market like this?
A: An experienced Realtor can:

• Negotiate favourable terms

• Connect you with trusted mortgage professionals

• Help you interpret market data

• Avoid costly mistakes during inspections or legal reviews

🎯 Final Thoughts

The Bank of Canada’s decision to hold rates steady is a clear message: we’re not out of the woods yet, but we’re also not spiraling. The Canadian economy is stabilizing. Mortgage rates are settling. And the housing market is finding its balance.

This is an excellent time for prepared buyers and serious sellers to make confident moves.

📞 Ready to Take the Next Step?

Whether you're buying your first home or planning to sell this spring, I’m here to help you make smart, informed decisions.

✅ Book a FREE home evaluation
✅ Let’s create a custom buyer plan just for you
✅ Discover how we can leverage Edmonton’s 2025 market in your favour

Visit PabianRealty.ca to get started, or reach out directly for a no-pressure consultation by texting or emailing (780) 232-2064.