BC Housing and Mortgage Insights Newsletter April 2, 2024
Dive into the dynamics of Canada's housing market: from government moves in mortgage bonds to sway borrowing, to the anticipated hike in recreational home prices. Discover how a standoff in real estate is affecting buyers and sellers, the introduction of a new renters' bill of rights, and a strategic shift addressing the housing crisis. Weekly insights for those keen on understanding market trends, policy impacts, and investment opportunities. Subscribe
Canada’s Deficit and Mortgage Bonds
The Canadian government is spending 75% of its forecasted deficit to buy Canada Mortgage Bonds (CMBs) in an effort to stimulate borrowing. This move raises concerns about global investment support for credit markets.
Recreational Home Prices
Median home prices in Canada’s recreational housing markets are expected to rise by 5% in 2024 due to growing demand for scarce listings. Royal LePage predicts an average price of $678,930 for single-family homes in this market.
Buyer-Seller Standoff in Real Estate
Canada’s real estate market faces a standoff between buyers and sellers. While some markets are picking up, the overall recovery hasn’t fully started. Interest rate cuts are expected to boost activity, but more cuts are needed to make a significant impact.
New Bill of Rights for Renters
Prime Minister Trudeau unveils a new bill of rights to help renters in British Columbia. The legislation aims to address affordability gaps and stimulate rental housing supply.
How Canada’s Housing Crisis Is Causing a Shift in Where We Live
Canada’s housing crunch is the result of decades of poor policy stemming from the federal government leaving the issue to the provinces in the 1980s. Former deputy prime minister Sheila Copps highlights the decision made in 1987 to withdraw federal involvement in housing, leading to underbuilt housing and inadequate housing policy. The recent collaboration between federal and provincial governments aims to address shortages and affordability challenges. Encouraging migration away from densely populated areas is also part of the solution.
