The Bank of Canada (BoC) finds itself in a precarious position. With inflation showing tentative signs of cooling, Canadians eagerly await an interest rate cut to ease the burden on wallets. However, Governor Tiff Macklem is wary of acting too hastily, fearing a resurgence in the housing market could undermine hard-won progress on inflation control. While recent data suggests inflation might be peaking, it remains well above the Bank of Canada's target of 2%. Housing costs are a key culprit. An overall shelter inflation rate of 6.5% reflects rising rents and higher mortgage rates' impact on ho ..read more

British Columbia is grappling with a significant housing crisis, and a key culprit identified is the booming short-term rental (STR) market. In an effort to increase long-term rental availability, the province is implementing stricter regulations for STRs, effective May 1, 2024. Fueling the Crisis: A Deluge of Short-Term Rentals B.C. is facing a severe shortage of affordable, long-term rentals. Data indicates that over 16,000 entire homes in the province are primarily used for STRs, significantly reducing the available long-term housing stock. This imbalance pushes up rents and makes it increa ..read more

The Bank of Canada is widely expected to hold its key interest rate steady at its upcoming policy announcement on April 10th. This comes after five consecutive decisions to maintain the current rate, suggesting a wait-and-see approach as the Bank gauges the impact of recent global economic developments. While inflation remains a concern, recent news has provided mixed signals. On the one hand, February’s inflation rate dropped to 2.8%, still above the Bank's target of 2%. However, discussions surrounding the effectiveness of past interest rate hikes (Read: Have Bank of Canada's interest rate h ..read more

Vancouver's condo market is sending mixed signals in February 2024. While condo apartment sales remain sluggish compared to pre-pandemic years, a record number of condos are under construction, raising concerns about a potential price correction. In January 2024, there were 54,368 condos under construction in Metro Vancouver. Construction Boom Meets Condo Chill The city is witnessing a surge in apartment construction, the highest in three years. This influx of new homes is creating an environment with a higher risk of price adjustments in the future. On the condo front, purchase activity has ..read more

The British Columbia government has passed Bill 47, the "Housing Statutes (Transit-Oriented Areas) Amendment Act," which aims to increase housing density near rapid transit stations. This legislation will significantly impact how municipalities plan development around public transportation hubs. Key Points of Bill 47 Requires municipalities to designate areas within 800 meters of rapid transit stations and 400 meters of major bus exchanges as transit-oriented development (TOD) zones. Mandates minimum density levels for development within TOD zones, allowing for taller buildings, potentiall ..read more

Victoria's housing market offered a tale of two segments in February 2024. While single-family home sales surpassed last year's figures, the condo market saw a significant slowdown. The market is also at a higher risk of a price correction than other Canadian markets due to high price volatility and a mismatch between housing costs and local incomes. Single-Family Homes See Uptick in Sales Sales of detached houses were brisker than in February 2023, but they remained below the peak activity witnessed in 2021 and 2022. Inventory levels, while technically low, are well above the 10-year averag ..read more

Calgary's housing market is showing signs of a tale of two cities in February 2024. While new construction is booming, with record starts and homes under construction, existing home sales remain brisk but below pre-pandemic levels. Houses in High Demand, Low Supply Demand for single-family homes in Calgary is outpacing supply, leading to a seller's market. Inventory sits well below two months, meaning available existing homes would be sold off quickly at the current sales pace. This scarcity, combined with lower-than-average homeowner mobility, has kept active listings low. Despite rising m ..read more

The Bank of Canada maintained its key interest rate at 5% on Wednesday, March 6th, reiterating its commitment to battling inflation despite some recent progress. Governor Tiff Macklem emphasized the need for continued vigilance, acknowledging both lingering risks and the gradual nature of monetary policy's impact. While economists largely anticipated the decision, the Bank's stance came across as "more hawkish than expected", according to Citi Bank economist Veronica Clark. This suggests a cautious approach, potentially delaying the first-rate cut anticipated by many. Underlying Inflation Rema ..read more

Toronto's housing market, once scorching hot, is now experiencing a shift. While 2023 saw improvement over 2022, activity is unlikely to match 2019, and prices are on a downward trend. But is this an opportunity or a warning sign? Key highlights: Detached houses: Prices have fallen significantly, and the dream of homeownership seems further away for many due to high mortgage rates. New construction: Prices are dropping, and pre-sale buyers might overpay compared to future sales. Negotiate for a discount! Condos: After record highs, prices are falling. Apartments in the $400k-$800k range ..read more

Vancouver's housing market has been a rollercoaster in recent years, but the overall trend since 2022 has been downward. While experts say things are improving from 2023, activity is unlikely to match 2020's peak, and the market remains high-risk. Key highlights: Metro Vancouver is a high-risk market due to affordability constraints and rising interest rates. Detached house prices have fallen significantly since their 2022 peak. Condo apartment prices are trending downward as well, with purchases lower than in previous years. New home prices are flat and unlikely to rise soon due to so ..read more