Author: Kate Du

Bank of Canada held its key rate at 2.25%, citing economic recovery and rising inflation risks.
Canada’s GDP grew 3.3% in Q2, while unemployment edged down to 6.4% in July.
The next rate decision is October 28, 2026, with the Bank set to reassess inflation and economic conditions.

Canada’s market showed early momentum, with resales improving, inventory flattening, and prices stabilizing as affordability and employment trends helped restore buyer confidence.
A key watchpoint is how quickly sidelined buyers return, as many postponed purchases yet now appear financially positioned to act on stronger savings and employment.
For 2026, the forecast called for resales ↓~4% to ~453K and benchmark prices ↓~2% to ~$794K, before modest gains returned in 2027.
Borrowing costs looked near lows, while the central bank was expected to hold rates; trade tensions and energy shocks remained key risks to momentum.
The forecast expected resales and prices to rise across all provinces in 2027, but described the broader recovery as irregular rather than transformative.

Vancouver recorded 1.9K home sales in the latest month, as the market's second-half slowdown continued and local experts expected that softer pace to persist.
Vancouver's composite benchmark for residential properties was ~$1.1M in the latest month, with analysts saying inventory levels paired with slower sales kept prices drifting lower.
The market added 4.1K new listings in the latest month, adding fresh supply to watch as Vancouver activity remained softer across the market.
Total inventory stood at 15.8K properties in the latest month, a key measure for anyone watching how much selection remained available across Vancouver.
The board expected Vancouver's second-half lag to persist through end-2026, signaling a market where pace and pricing would stay closely watched locally.

Labour Day in Canada marks a well-earned break celebrating workers and the unofficial end of summer, when everyone suddenly remembers all the things they meant to do in August.
It’s the last big excuse for barbecues, lake trips, and squeezing in one more summer adventure before routines and school schedules take over again.
Stores and sidewalks feel a little calmer, while patios and parks get their final big rush of summer energy and “just one more weekend” vibes.
Happy Labour Day! Wishing you a relaxed, fun-filled long weekend with good food, no alarms, and maximum enjoyment before fall shows up uninvited.

The Bank of Canada is currently holding at 2.25%, but several major-bank forecasts now anticipate gradual increases during 2027.
Stronger economic growth could give policymakers more room to normalize rates if inflation pressures remain persistent.
Higher rates would raise borrowing costs for households and businesses while potentially improving returns on savings and fixed-income investments.
Investors may need to prepare for a less accommodative environment, balancing improving growth against renewed interest-rate pressure.