Another rate hold from the Bank of Canada on June 4 underscores the delicate balancing act between taming inflation and sustaining economic momentum. For the housing market, this continued pause places further strain on affordability, especially for first-time buyers and variable-rate mortgage holders who were holding out hope for relief this summer.

While some were anticipating that a series of rate cuts would unlock pent-up demand and reignite activity, the most recent announcement suggests a slower-than-expected rebound. We can expect real estate decisions – from home purchases to development launches – to remain measured and cautious through the summer months.

Housing and affordability crisis

However, I have to express a degree of personal disappointment.

Canada is in the midst of a housing and affordability crisis that is not only persistent, but increasingly urgent. We’re seeing more families sidelined from homeownership, more developers hesitating to bring projects to market, and more young people wondering if they’ll ever build a future in a system that feels out of reach.

While I respect the Bank’s cautious stance in battling inflation, the current pace of monetary policy adjustment feels misaligned with the severity of the housing challenge on the ground. At a time when Canadians are feeling squeezed from all angles, the need for a more responsive, coordinated approach has never been greater.

What we need now is not only responsible rate policy, but real, multi-level government intervention that supports housing supply, affordability and access. That means:

• Enhanced support for first-time homebuyers (especially when it comes to down payments)
• Re-evaluation of restrictive lending criteria that lock out qualified buyers
• Acceleration of development approvals and smarter zoning policy
• Access to flexible financing tools that empower families and investors alike

Cautiously optimistic

Despite the short-term pause, there is still reason to feel cautiously optimistic.

The next Bank of Canada announcement on July 30 may land at just the right time to bring momentum back into the market and set the stage for a strong, active fall. But the wise buyer or investor won’t wait for a headline to act. With attractive deals already circulating – particularly in pre-construction and value markets, this summer presents an important window of opportunity.

In real estate, timing is everything and smart decisions start before the headlines change.