A closer look at recent research from Canada’s central bank highlights an important reality about our housing market: while lower interest rates can spark a quick jump in homebuying demand, the supply side takes much longer to catch up. In fact, after a rate cut, we usually see home resales start to climb almost immediately, with the full impact showing up 18 to 24 months later. New housing starts, on the other hand, often don’t see a real boost until about two years after rates drop. When the job market is strong and lending is easier, buyers feel even more confident stepping into the market. But for builders, higher prices and cheaper financing only begin to make new projects more feasible—long permitting and planning processes, especially for multi-unit developments, mean new supply lags behind that initial surge in demand. This all points to a key insight for anyone thinking about affordability: monetary policy, like adjusting interest rates, isn't a silver bullet. Supply ultimately follows demand, and that lag can keep affordability out of reach for many. As your dedicated partner in real estate and home inspection, I’m always watching these trends so you can make informed decisions in a shifting landscape.