Lower interest rates are expected to continue as money markets are pricing in an almost 100% chance of a 50-basis point cut in the Bank of Canada rate on October 23, followed by a cut in December. With every interest rate cut we’re expecting to see a larger number of buyers wanting to purchase a home. It’s a positive double whammy for buyers right now with the benefit of lower borrowing costs and more inventory. The ability to negotiate on price led to moderate year-over-year price declines, particularly in the more affordable condo apartment and townhouse segments, which are popular with first-time buyers. The average selling price in September of $1.1 million was down by one per cent compared to the same time last year, with condos and townhomes seeing the biggest price drops of 3.6 per cent and 4 per cent, respectively. Changes over the past month to mortgage lending guidelines will give home buyers more options. The ability for existing mortgage holders to shop around for the best rate without facing the stress test will result in more affordable renewals. Longer amortization periods and the ability to insure mortgages for purchases up to $1.5 million will also give home buyers more options.