Canada: Rate Cuts Can Worsen Affordability | Your Go To Realtor for Edmonton & Area!

Many folks assume that lower interest rates will make homeownership instantly more affordable, but central bank research paints a more complex picture. While cheaper borrowing does tend to boost housing demand in Canada—often leading to a jump in resales within 18 to 24 months—the supply side takes much longer to catch up. Builders only start to respond to these changes around two years later, as increased prices and easier financing make new projects more attractive. Plus, with strong job markets and easier lending, buyers often feel more confident to make a move. But with supply always lagging behind demand, experts say cutting rates isn’t a magic fix for housing affordability. As someone who puts your needs first, I know how important it is to look beyond headlines and consider all the moving parts when navigating our local market.