Recovery also depends on homeowners actually deciding to sell, and many are staying put rather than trading a low mortgage rate for a new one, which slows the return of resale inventory regardless of how much new construction gets built.
New construction adds supply eventually, but it works on a multi-year timeline from approval to an occupied home, so even a strong building season now would not visibly loosen the market for some time. CMHC tracks housing starts as part of its national data, and that pipeline is the slower half of any recovery.
Expect gradual, not sudden, and expect it to take more than one good month of new listings. Get your hand-reviewed valuation from Joel Dyck.