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

Recent Bank of Canada research highlights something I see time and again in our local markets: when interest rates are cut, home sales surge almost immediately, but new construction takes much longer to catch up. This means prices can keep climbing, especially when jobs are plentiful and more buyers are entering the market. The result? Demand keeps outpacing supply, and affordability suffers. From my experience working in neighbourhoods like Central Lonsdale, Fraserview NW, and Westwood Plateau, it’s clear that lasting solutions come from increasing housing supply—not just relying on rate changes. Policies that encourage more building may be the key to creating real balance for buyers and sellers alike.