As we step into the second half of 2025, the Bank of Canada’s recent decision to reduce interest rates has stirred excitement and questions across the real estate sector—especially in Calgary, where affordability, migration, and development continue to shape a unique housing story.

The Impact of Interest Rate Cuts on Buyer Activity

With mortgage rates easing, many first-time homebuyers who were previously priced out are now re-entering the market. Mortgage approvals are ticking up, and bidding activity on mid-range detached homes and townhomes is increasing. The rate cuts are giving confidence to not only end-users but also seasoned investors.

Renewed Interest in Pre-Construction & New Builds

Developers are seeing increased foot traffic and demand for pre-construction homes, especially in growing suburbs like Livingston, Rangeview, and Seton. Lower borrowing costs mean better ROI on newly built or planned inventory—timing is crucial right now.

Upside for Move-Up Buyers & Investors

Current homeowners looking to upsize are leveraging the equity in their homes, combined with favorable borrowing conditions. For investors, multifamily properties are becoming more attractive again, especially those qualifying under financing programs like MLI Select (recently gaining traction).

Price Trends: Still Strong, But Stabilizing

Calgary continues to offer relative affordability compared to other major Canadian cities. However, with increased demand driven by cheaper money, some neighborhoods are seeing moderate price hikes. That said, expert consensus points to a more balanced market in the coming months—not a frenzy.

Where the Smart Money Is Going

• South Calgary and SE suburbs: Continued demand due to new infrastructure and schools.
• Inner-city infills and townhomes: Downsizers and professionals still prioritize walkability.
• Purpose-built rentals: A growing sector thanks to population growth and ongoing rental demand.

Final Thoughts

Interest rate cuts in 2025 are already reshaping Calgary’s housing market. Whether you’re buying, investing, or planning to sell, this shift is a signal to act with strategy—not hesitation.

To learn more about what Calgary’s bustling real estate market has to offer, contact the Top Calgary Real Estate Team today!

Justin Warthe
Team Lead
403-620-8746
jw@topcalgaryrealestate.com