Recent research from Canada’s central bank highlights an important reality for buyers and sellers: while interest rate cuts can spark a quick uptick in housing demand, the supply of homes takes much longer to respond. As someone who’s guided families through every market cycle since 1985, I’ve seen firsthand how affordability challenges aren’t solved by cheaper borrowing alone. In Canada, the data shows resales tend to rise almost immediately after rate cuts, with the full impact emerging 18 to 24 months later. New construction, however, only begins to pick up about two years after rates drop—largely due to the lengthy planning and permitting process, especially for multi-unit developments. Strong job markets can make these effects even more pronounced, as confident households move quickly while builders need time to catch up. The message for clients: while lower rates may eventually support more building, affordability depends on more than just monetary policy. Trusted guidance is essential to navigating these evolving market forces and making informed decisions—something I remain deeply committed to providing every step of the way.
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