Bank of Canada Explores Rate Cuts’ Impact on Housing Solutions

The Bank of Canada’s latest research highlights a tricky reality: when interest rates are cut, housing demand jumps almost immediately, while the supply of homes takes around two years to catch up. As a REALTOR® working with buyers and sellers in Bridgewater, I see firsthand how lower borrowing costs can push prices higher—especially when construction costs remain stubbornly elevated. While rate cuts might sound like a quick fix for housing affordability, this research shows there’s more to the story. Navigating these shifts takes local insight and a clear understanding of how policy changes ripple through our market.