Rate cuts boost housing demand faster than supply, BoC research finds

Interesting findings from the Bank of Canada: rate cuts tend to boost home sales right away, but new construction takes longer to catch up. This means demand often outpaces supply, which leads to ongoing price increases and makes it tougher for many buyers—especially when unemployment is low. From my experience supporting clients through every step of their real estate journey, I see how these imbalances affect affordability firsthand. Approaches that prioritize increasing housing supply, rather than relying solely on monetary policy, may be key to making a real difference.