Published July 30, 2025
By Lori Nitah | Calgary & Area Real Estate
On July 30, 2025, the Bank of Canada held its key overnight rate steady at 2.75%, pausing after seven consecutive cuts. With the Bank Rate at 3% and the deposit rate at 2.70%, this decision reflects a cautious approach in the face of global trade uncertainties, particularly evolving U.S. tariffs and their impact on Canada's export-driven economy.
So, what does this mean for those of us navigating Calgary’s real estate market?
📉 Still-Low Rates = Affordability
The current rate hold still offers historically low borrowing costs, which is great news for homebuyers and real estate investors alike. While the Bank didn't cut rates further, the overnight rate remains significantly lower than it was just a year ago, making mortgages more accessible to many Calgarians.
If you're considering a purchase, now is still a smart time to get pre-approved and explore what you can afford. Lower rates improve purchasing power and can reduce your monthly mortgage payments.
🏘️ Calgary Market Outlook: What Buyers & Sellers Should Know
Despite volatility in global trade, Calgary’s local economy and housing market have shown resilience. Here’s how the rate hold is influencing real estate activity:
Buyers: You’re likely to benefit from stable interest rates for now, but it’s still essential to lock in a rate while you can. If tariffs escalate further, it could impact inflation and borrowing costs down the line.
Sellers: Buyer confidence remains high thanks to favourable financing conditions. Homes priced right—especially detached homes —are seeing steady demand, particularly in Calgary.
📊 Tariffs & Inflation: The Bigger Picture
The Bank of Canada’s July Monetary Policy Report didn't include traditional forecasts due to unpredictable U.S. trade actions. Instead, it outlined three possible paths:
Current Tariff Scenario: Modest economic growth (~1%) in the second half of 2025
Escalation Scenario: A possible economic contraction this year
De-escalation Scenario: A quicker economic rebound
Inflation is hovering around 2%, with shelter costs still a key driver, but easing. The Bank noted that while some costs are rising (e.g. supply chain reconfiguration), they’re being balanced by softer economic activity.
🔍 What This Means for You
Whether you're buying, selling, or investing, here’s what to keep in mind:
Rate Holds Are Still Buyer-Friendly: You may not see rates go much lower, so now’s a smart time to make a move.
Trade Uncertainty Adds Complexity: Global events may influence local affordability and price growth.
Talk to a Pro: It’s more important than ever to work with a real estate professional who understands both the macro picture and your local market.
✅ Final Thoughts
The Bank of Canada is taking a measured approach in the face of global economic turbulence. For Calgary’s real estate market, this creates a window of stability and opportunity. Whether you're a first-time buyer, a downsizer, or an investor, now is a great time to assess your options and plan your next move with confidence.
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🌐 www.LoriNitah.ca
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