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

The latest Bank of Canada research confirms what many of us see on the ground: when interest rates drop, home sales surge almost immediately, but new construction takes much longer to catch up. This means demand quickly overtakes supply, pushing prices higher and making affordability an ongoing challenge—especially with unemployment rates so low. From my experience helping buyers and sellers across Abbotsford, Surrey, and the Greater Vancouver area, I’ve seen how market shifts like these can impact real people. It’s a reminder that tackling housing imbalances may require more than rate changes; targeted supply-focused policies could offer a better path forward for those hoping to find their next home.