Blog

Please enjoy my latest Blog


RSS

Bank of Canada maintains policy rate, continues quantitative tightening.

As your dedicated real estate professional, I'd like to provide you with some valuable insights into the recent developments in Canada's financial landscape. This week, the Bank of Canada decided to maintain its benchmark interest rate at 5%, a move consistent with its trend of gradual increases since early 2022 aimed at addressing inflation.

Since the establishment of the current rate in July, there has been no change, reflecting the bank's response to signs of a slowing Canadian economy. This stability is a measured approach to ease inflationary pressures that have been impacting various sectors.

The importance of the bank's rate lies in its influence on rates for variable-rate loans and certain savings accounts for Canadians. The recent economic slowdown is evident in key indicators, such as a decrease in inflation to 3.1%, a decline in consumer spending, and a noticeable reduction in household borrowing. These trends have contributed to a recent decline in GDP, sparking discussions about the possibility of a recession.

Many Canadians are feeling the financial strain, with a decline in real GDP per capita for five consecutive quarters. This economic pressure is resulting in a shift in financial behavior, with more individuals opting for fixed-rate mortgages and prioritizing debt repayment. Bank reports also confirm this change, indicating a decrease in certain types of mortgages.

This economic scenario has led to the slowest growth in consumer credit in three decades. Adjusted for inflation, there is an actual decline in household credit, signaling the beginning of a deleveraging phase. If interest rates don't decrease soon, there is a possibility of a household balance sheet recession.

Looking ahead, economists anticipate that the Bank of Canada might start reducing interest rates in the next year, with predictions of significant cuts by the end of 2024. This outlook is based on a poll of 26 economists, providing a median expectation of rate reductions. This potential shift in monetary policy could have significant implications for the Canadian economy and the real estate market.

Official Press Release HERE

​Please do not hesitate to contact me should you have any questions or would like to discuss further.

 Thanks,

Aaron

Read

Home sales fall for fifth straight month in the Fraser Valley

SURREY, BC — The Fraser Valley real estate market continues to cool heading into the holiday season as buyers and sellers maintain the holding pattern seen over the latter half of this year...



FOR THE FULL PACKAGE: https://www.fvreb.bc.ca/statistics/Package202311.pdf

If you ​have further questions please feel free to reach out directly to me, I am here to help.


Read
Categories:   100 Mile House - Rural Real Estate | Abbotsford East Real Estate | Agassiz Real Estate | Bradner, Abbotsford Real Estate | Brookswood Langley Real Estate | Brookswood Langley, Langley Real Estate | Cambie Real Estate | Campbell Valley Real Estate | Central Abbotsford Real Estate | Chilliwack Proper West, Chilliwack Real Estate | Chilliwack River Valley Real Estate | Clayton Real Estate | Cliff Drive Real Estate | Cliff Drive, Tsawwassen Real Estate | Cloverdale BC Real Estate | Cloverdale BC, Cloverdale Real Estate | Crescent Bch Ocean Pk. Real Estate | Delta Manor Real Estate | Downtown VW Real Estate | East Central Real Estate | East Newton Real Estate | Elgin Chantrell Real Estate | Elgin Chantrell, South Surrey White Rock Real Estate | English Bluff, Tsawwassen Real Estate | Fairfield Island Real Estate | Fleetwood Tynehead Real Estate | Fleetwood Tynehead, Surrey Real Estate | Grandview Surrey Real Estate | Grandview Surrey, South Surrey White Rock Real Estate | Harbour Chines Real Estate | Hatzic Real Estate | Holly Real Estate | Hope, Hope & Area Real Estate | King George Corridor Real Estate | King George Corridor, South Surrey White Rock Real Estate | Ladner Elementary Real Estate | Ladner Rural, Ladner Real Estate | Langley City Real Estate | Langley City, Langley Real Estate | Lone Butte Real Estate | Maillardville Real Estate | Mission BC Real Estate | Mount Pleasant VE Real Estate | Mount Pleasant VE, Vancouver East Real Estate | Pacific Douglas Real Estate | Panorama Ridge Real Estate | Port Moody Centre Real Estate | Port Moody Centre, Port Moody Real Estate | Promontory Real Estate | Queen Mary Park Surrey, Surrey Real Estate | Quesnel - Town Real Estate | Quesnel - Town, Quesnel Real Estate | South Marine, Vancouver East Real Estate | Southwest Maple Ridge Real Estate | Sullivan Station Real Estate | Sullivan Station, Surrey Real Estate | Tsawwassen East Real Estate | Tsawwassen North Real Estate | Walnut Grove Real Estate | West End VW, Vancouver West Real Estate | West Newton, Surrey Real Estate | Whalley Real Estate | Whalley, North Surrey Real Estate | White Rock Real Estate | White Rock, South Surrey White Rock Real Estate | Willoughby Heights Real Estate | Yaletown Real Estate | Yarrow Real Estate
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.