On January 29, the Bank of Canada lowered its policy interest rate from 3.25% to 3.00%. However, the path for future rate cuts is now uncertain. While inflation remains close to target, recent economic data has shown unexpected strength, with job growth surpassing expectations and unemployment declining for the second consecutive month. Market expectations for a rate cut at the March 12 meeting have dropped significantly, with analysts divided on whether the Bank will proceed. Some argue that continued economic uncertainty, including potential U.S. tariffs, justifies further easing, while others point to resilient inflation and employment figures as reasons to hold steady. This uncertainty adds a layer of complexity to the housing market outlook.

While robust sales and listings have created a steady foundation for the market, there is considerable uncertainty ahead. The Trump administration’s threats of new tariffs have sparked concerns about significant economic disruptions. Given Victoria’s stronger market conditions, the region may be more insulated from immediate effects, but buyers and sellers should stay informed as these geopolitical and economic factors continue to unfold.