Calgary's Real Estate Market Booms Following Interest Rate Cut
Calgary, Monday, 3 November 2025.
The Bank of Canada’s rate cut to 2.25% spurs a surge in Calgary relocations, boosting local moving services and potentially revitalizing the broader real estate market.
Impact of the Rate Cut on Calgary’s Housing Market
The recent decision by the Bank of Canada to reduce its key interest rate from 2.50% to 2.25% on October 29, 2025, is having a significant impact on Calgary’s real estate market. This move is part of a broader strategy to address economic challenges such as a slowing labor market and trade-related uncertainties [1][6]. With borrowing costs lowered, more homeowners in Calgary are considering relocation, leading to increased activity in the housing sector [1].
A Surge in Relocations and Moving Services
Calgary Movers Pro, a local moving company, has reported a noticeable increase in demand for its services following the rate cut. This surge in relocation activity is primarily driven by favorable mortgage rates, which are encouraging families to move into new neighborhoods such as Sage Hill and Kincora [1][3]. The company has completed over 100,000 relocations since its founding in 1994, and recent trends suggest a continued rise in business [1].
Broader Economic Implications
The Bank of Canada’s rate cut is not only affecting the housing market but also has wider economic implications. The adjustment reflects underlying economic issues, including the need to support economic growth in the face of external pressures like U.S. trade policies [3][6]. As a result, the real estate market in Calgary is becoming more attractive, potentially leading to a longer-term revitalization [5].
Future Outlook for Interest Rates
Looking ahead, the Bank of Canada has scheduled its next rate decision for December 10, 2025. Economists suggest that while there might be further rate cuts, the likelihood of maintaining the current rate is high, barring significant changes in economic conditions [3][6]. This cautious approach is aimed at balancing inflation control with the need to stimulate economic activity [6].