While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October. The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity. Interest rates trending lower impacts behaviour on the buying and selling sides. While buyers continue to wait for rates to drop before purchasing, sellers are then waiting to list their home for sale when more buyers enter the market. First-time homebuyers, who typically enter the market by purchasing condos, are the most sensitive to interest rate changes and are beginning to purchase units again. The popular five-year fixed mortgage is now just above 4 per cent. While market conditions did tighten in October, there is still a lot of inventory and choice for homebuyers. This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.