The BoC announced an interest rate cut of 25 basis points, and I can tell you the next announcement on October 17th will be a 25 basis point cut as well barring any extreme economic shifts in the meantime. The reason for this is there is never just 1 interest rate cut, it’s a cycle. Looking back on the history of interest rate cuts or increases, it's never just one. Which means there is more than likely going to be a third one as well in December. This would bring the key rate to 2 - 2.25 which is still well within an optimal and sustainable operating interest rate for the central bank.

For the fall market, this is going to do nothing. Interest rates need 4-6 months to filter their effects into the economy even for a shift in sentiment at this point. There is also too much inventory to have any short term market shift.

I’ve said this a few times before, but inventory decreases over Christmas and the new year. Even without sales a lot of potential sellers take their homes off the market. Diminished inventory combined with improved market sentiment and an economic boost from interest rate cuts has the potential to yield a strong spring market.

Not a spring market that I believe to see a noteworthy surge in prices but definitely stiffer competition amongst buyers and a better environment for an easy sale.

The Bottom Line:

I’d say if you’re looking to upsize and feel confident with the numbers in their current format now is a good time. If you are looking to downsize it could be fruitful to see what the Spring market yields.