Canada’s housing sector, which accounts for nearly 13% of GDP or around US$287bn, has shown tentative signs of recovery after months of sluggish activity. The Bank of Canada’s recent decision to trim its key rate by 25 basis points to 2.5%, the lowest in three years, has raised hopes that buyers sidelined by high borrowing costs will return. Mortgage rates, closely tied to the policy rate, had soared after the central bank’s aggressive tightening from 0.25% in early 2022 to 5% by 2023, the highest since 2001. That rapid rise left thousands of homes unsold and cooled activity in markets like Toronto and Vancouver.The latest cut mirrors the Federal Reserve’s own move, with both central banks seeking to balance growth with inflation control. The Canadian Real Estate Association reported national home sales rising just over 1% in the past month, the fifth straight monthly gain, while average prices climbed nearly 2% year-on-year. Analysts believe the easing cycle could accelerate a broader rebound, especially if rates continue to decline through the fall.What Does This Mean for Me?While uncertainties tied to trade disputes and global growth remain, the combination of monetary easing and new supply measures signals a coordinated attempt to revive a market long weighed down by high rates. If momentum builds, the housing sector could once again act as a stabiliser in a fragile economy.