BC Housing and Mortgage Insights Newsletter March 8, 2024

Stay informed on the latest developments in British Columbia’s real estate market! Whether you’re a homebuyer, seller, or investor, our weekly expert analysis covers everything you need to know. Dive into articles on the provincial flipping tax, Bank of Canada rates, mortgage delinquencies, and more. Welcome aboard! 🏡📈 Subscribe

More Trouble Than It Is Worth – Analyzing the Impacts and Consequences of the Provincial Flipping Tax

The British Columbia Real Estate Association (BCREA) examines the proposed provincial flipping tax in British Columbia. Contrary to concerns, the report finds that flipping activity constitutes a small share of overall transactions. While the tax may slightly reduce sales, its impact on home prices is minimal. However, there’s a risk that potential sellers might delay listing their homes, affecting housing supply and market conditions.

Bank of Canada says it’s ‘too early’ to cut rates. Here’s what to expect

The Bank of Canada has maintained its benchmark interest rate at 5.0%, citing it’s "too early" to cut rates. Despite signs of cooling inflation, the central bank remains cautious. Economists anticipate rate cuts later in the year due to economic slowdown and downward pressure on price growth.

Canadian Mortgage Delinquencies Surge, Up 135% In Ontario: Equifax

Equifax reports a surge in mortgage and non-mortgage credit delinquencies in Q4 2023. While nationwide delinquency rates are in line with historical data, BC and Ontario stand out. Ontario’s mortgage delinquency rate has spiked by 135%, surpassing pre-pandemic levels. The issue is particularly pronounced among younger homeowners.

Trudeau should curb spending to make way for Bank of Canada rate cuts, economists say

Economists advise Canadian Prime Minister Justin Trudeau to rein in spending in the upcoming budget. Doing so would provide a disinflationary impulse to the economy, potentially allowing for earlier rate cuts. The government’s current spending levels have put it at odds with the Bank of Canada’s warnings about inflation.

Chrystia Freeland to present federal budget on April 16

Deputy Prime Minister and Finance Minister Chrystia Freeland will unveil Budget 2024 on April 16. The budget aims to address housing affordability, create jobs, and make life more affordable for Canadians. It comes amid ongoing cost-of-living concerns and economic challenges.