As someone who’s worked with buyers and sellers across Greater Vancouver, I see firsthand how changes in interest rates ripple through our housing market. Recent research from Canada’s central bank backs up what many of us experience: when rates drop, home demand jumps quickly, but supply is much slower to catch up. For example, resales tend to rise within months of a rate cut, reaching their peak impact after 18 to 24 months. New construction, on the other hand, usually ramps up about two years after rates fall because builders need time for planning, permits, and to weigh the improved project viability that comes with higher prices and easier financing. Strong job markets can make this cycle even more pronounced, as people feel more confident buying. Still, the bottom line is clear—lower interest rates alone don’t solve affordability challenges, since supply always lags behind demand. It’s a reminder that real estate decisions depend on more than just borrowing costs. My approach is always to help clients navigate these shifts with transparency and integrity, so you can make informed choices for your next move.
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