Today's episode is a little different as we decided to take opposing views of the current economic landscape and we discussed both the positive and the negative elements that are currently affecting the real estate market in Canada. We touch on 5 broad subjects and dive into the current economic climate that has presented a world of challenges including our declining GDP alongside rising unemployment and corporate bankruptcies. Will this get better or will it continue to worsen? While uncertainties persist about the long-term effects of COVID-19 decisions, the potential onset of a recession could lead to interest rate cuts, offering hope for a quicker recovery. Though with sticky inflation, rates could also stay higher for longer. Which camp do you find yourself in?

We touch on interest rates specifically and whether lowering interest rates is necessarily the right course of action. Certainly by doing so it will stimulate economic growth by encouraging borrowing and spending which can lead to increased investment, asset prices, and ultimately, a reduction in unemployment. However, careful management is required to balance these benefits with potential inflation concerns.

Immigration and population have been a really hot topic, especially considering the eye watering numbers we've become accustom to seeing over the last few years. While slowing population growth can alleviate strains on resources, improve labor market stability, and enhance social cohesion, we could also hamper any strong recovery by not having enough skilled people in the workforce to handle a growing economy.

We also dive into the introduction of the Plex Plan and weather it will transform the real estate landscape, particularly in transit-oriented development areas. While its impact may initially be limited, it has the potential to slow price escalation and increase housing supply, especially with supportive immigration policies. But what about the single-family home market? How will it be affected?

Lastly, we touch on inventory. Challenges have persisted in creating sufficient housing supply over the last decade despite initiatives like the housing accelerator fund and other government initiatives. However, policies such as the Plex Plan and Transit-Oriented Development offer hope for densification and new inventory. Middle housing and family-oriented condo designs could further address housing needs as we look to find solutions to our ever shrinking supply of homes in Canada.

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📆 https://calendly.com/thevancouverlife

Dan Wurtele, PREC, REIA

604.809.0834

dan@thevancouverlife.com

Ryan Dash PREC

778.898.0089
ryan@thevancouverlife.com

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