Dear Valued Subscriber

What changed today (the 30-second version)

• The Bank of Canada cut the policy rate by 25 bps to 2.50%. The Bank Rate is now 2.75% and the deposit rate 2.45%. It’s the first move since March and the lowest policy rate in three years. Bank of Canada+1

• Why they cut: Cooling growth (Q2 contraction), a softer labour market (unemployment ~7%), and inflation drifting toward the 2% midpoint. The Governing Council signalled it’s prepared to ease further if risks intensify. Reuters

Mortgage takeaway: Variable rates should drop ~0.25% almost immediately; fixed rates may ease modestly as bond yields adjust, but expect more gradual movement.

Why it matters for housing (near-term)

• Demand impulse: Lower carrying costs lift pre-approvals and improve stress-test math at the margin, especially for first-time buyers. Expect a sentiment pop heading into fall listings. Bank of Canada

• Prices vs. inventory: National activity has been firming—August was the best August for sales since 2021, the fifth straight monthly gain—yet price growth remains muted as new listings improve choice. Translation: more deals, not a melt-up. CREA Statistics+2sherrycooper.com+2

• Regional split: Forecasters still see Toronto/Vancouver underperforming the national average near term, while Prairies and parts of Québec/Atlantic look firmer given tighter supply. Reuters

How it compares to the U.S.

• The Fed also cut 25 bps today, and guided to a steady pace of reductions into year-end amid a softening U.S. labour market. Reuters+1

• Implications for Canada: Synchronized easing reduces CAD-USD divergence risk (supportive for bond markets and fixed-rate funding). If the Fed continues to ease into Q4, it lowers the ceiling on Canadian fixed mortgage rates even if local data wobbles. Reuters

What we’re seeing right now (on the ground)

• GTA: Activity cooled in August after a spring/summer climb; price index fractionally lower m/m, still down y/y. Today’s cut should stabilize absorption through the fall, especially for townhomes and entry condos. Yahoo Finance

• Nationally: Sales have risen ~12.5% cumulatively since March; the average price is up modestly y/y, but CREA’s HPI is essentially flat m/m—classic early-cycle behaviour when rates fall and inventory rebuilds. CREA Statistics

What to do now (playbook)

Buyers

• Refresh your pre-approval this week to lock the new variable rate and test fixed options; shop broadly before any Q4 sentiment bounce tightens negotiations. NerdWallet

Sellers

• Price to last 30–60 days, not last year. Feature operating-cost wins (energy improvements, low maintenance). The cut helps demand, but buyers remain price-sensitive. Yahoo Finance

Investors

• Focus on family-sized rentals and near-transit assets where absorption is resilient. Cap rates won’t compress overnight; underwrite today’s rents and use conservative expense lines. CREA Statistics

🤝 How Manasseh Homes Can Help You Stay Ahead

At Manasseh Homes, we understand how global and national shifts impact your local real estate decisions. We provide:

• Custom neighbourhood analysis based on trade and policy exposure

• Renovation ROI assessments factoring in tariff-inflated construction costs

• Smart portfolio diversification strategies for risk-managed growth

Whether you’re actively looking or simply planning your next move, we’re here to help you navigate what’s next—confidently and strategically.

👉 Book your strategy session today at cal.com/manassehhomes

See you next week