VANCOUVER, British Columbia, Oct. 19, 2023 (GLOBE NEWSWIRE) -- The rennie landscape, a semi-annual compendium of factors affecting the housing market in Metro Vancouver, Kelowna, and Victoria, reports in its Fall 2023 edition that the Bank of Canada’s high interest rates have slowed the Canadian economy, meaning it will no longer need to raise rates to impede inflation.
“Relief is coming to many homeowners and would-be home buyers. While challenges undoubtedly lie ahead for some businesses and households as the labour market softens and the economy slows, fewer inflationary headwinds will translate to a moderation in interest rates,” said Ryan Berlin, Senior Economist & Vice President of Intelligence at rennie.
“While inflation is likely to bounce around in the short-run, there is clear evidence that both the labour market and broader economy are responding to tighter monetary policy, particularly when viewed through a per-capita lens,” said Berlin.
According to the report, Canada’s unemployment rate remains near its all-time low—revealing the strength of the Canadian economy in the face of generationally-high borrowing costs. Record population growth initially boosted job gains, but employment growth is currently slowing, causing the unemployment rate to rise due to a shrinking job vacancy pool.
The Fall 2023 edition of the rennie landscape, produced by rennie’s Intelligence division, also revealed:
- Inflation is working its way back towards the bank’s target range, while interest rates are at their highest level in two decades, with the Bank of Canada policy rate at 5.00%.
- Real wage growth has moved into positive territory, while job vacancies and the job-change rate are falling. The deepest inverted yield curve in 30 years, and amplified bond yield volatility, point to the possibility of a recession.
- Canadians are taking on less new debt, as high interest rates continue to weigh on housing market activity, though Canadians are paying far more interest on their current debts than in the recent past. The mortgage debt-service ratio is at its highest level ever.
- Canada is welcoming even more international immigrants in 2023, with the number of work and study permits issued on pace for (another) record-breaking year.
- Real estate markets are accruing unmet demand, as the pace of per capita sales trails historical averages. Mortgage-free equity plays an outsized role in major markets in British Columbia, due in part to higher home values.
- The focus is on supply, as the provincial government is setting municipal housing targets in an effort to ensure cities accommodate their fair share of growth. The federal government is removing GST for new purpose-built rental housing to spur new construction of rental homes.
About the rennie landscape
The rennie intelligence division has just released its semi-annual publication, the rennie landscape, which provides thoughtful, contemporary analysis of the myriad factors impacting the housing markets of Metro Vancouver, the Central Okanagan, and Greater Victoria. The commentary in the rennie landscape is lively, and the insights are objective and data-driven. Key stakeholders in the real estate industry—including developers, realtors, commercial brokers, and institutional investors—rely on the rennie landscape for its succinct review of the latest trends that matter to our market.
About rennie intelligence
The rennie intelligence division consists of our senior economist, market intelligence analysts, and business intelligence specialists. Together, they empower individuals, organizations, and institutions with data-driven market insight and analysis. Experts in urban land economics, community planning, shifting demographics, and real estate trends, their strategic research supports a comprehensive advisory service offering and forms the basis of frequent reports and public presentations. Their thoughtful and objective approach truly embodies the core values of rennie. For more information, visit rennie.com/intelligence.
About rennie
rennie brings a thoughtful, trusted approach to real estate, supporting their clients and communities for more than 40 years. A fully-integrated real estate company, rennie offers developer services and advisory services along with their brokerage, rennie and associates realty. Founded on a people-first culture, their growing team of 130+ head office staff and 240+ real estate advisors work seamlessly together to deliver exceptional experiences and service. Collectively, the rennie team provides their clients with the confidence they need to make informed decisions when buying, selling, or building a home or community. To learn more, visit rennie.com.
For more information, interviews, high-res photos, or to request a physical copy of the Fall 2023 rennie landscape, please contact:
Melissa Faulkner
Communications Coordinator
melissafaulkner@rennie.com
A chart accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d42fc00e-8ce7-4ec7-a9a7-89fc87771c45
