Interesting new research from the Bank of Canada highlights something I see regularly in our local market: when interest rates drop, home sales pick up quickly, but new construction takes much longer to respond. This means prices keep rising, as demand far outpaces the number of homes available—especially when employment stays strong. It’s another reminder that while rate cuts make it easier for buyers to enter the market, they don’t do much to solve our supply challenges. In my 15+ years helping clients across the Fraser Valley and Greater Vancouver, I’ve found that long-term affordability depends on increasing the actual number of homes available, not just adjusting borrowing costs. If you’re thinking about your next move—whether buying, selling, or investing—understanding these dynamics can really make a difference.
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