The Vancouver Life Real Estate Podcast Canadian Job Market Growth SHOCKS Mortgage Rate Forecasts
This week’s episode is packed with crucial updates and insights that could directly affect your real estate decisions in 2025.
A much stronger-than-expected jobs report has thrown a wrench into predictions for interest rate cuts, potentially keeping the Bank of Canada on hold this January. With Canada adding 91,000 jobs last month, (far exceeding expectations) compounded by labour market strength is complicating the case for lower rates. However, not all is as it seems: 62,000 of those jobs went to workers over 55, and a significant portion came from public sector growth (44%!). We break down what this could mean for mortgage rates and why the 5-year bond yield is already climbing.
In Vancouver, affordability continues to be a challenge as recent policies are expected to push home prices higher. On the flip side, there’s good news out of Burnaby, where one of the first multiplex building permits has been approved. The timeline, fees, and offsite costs surprised even the developer—and might give hope to those exploring small-scale development opportunities.
We also tackle the ongoing affordability crisis, exploring how the ban on natural gas in new construction and new net-zero mandates are inflating the cost of homes. For example, a fourplex project now have an additional $150,000 for electrical upgrades, adding roughly $40,000 to the cost of each unit. These policy changes are a stark reminder to “watch what they do, not what they say” when it comes to government claims about building affordable housing.
Meanwhile, mortgage arrears are also starting to climb, with delinquency rates hitting a 9-year high in Toronto. Yet even as the headlines grab attention, the data tells a different story—arrears remain well below pre-pandemic levels, and the overall risk of panic is low. However, with 50% of mortgage holders set to face higher payments over the next two years (in excess of 30+%), it’s clear that financial strain is building for many Canadians.
We also take a closer look at the nearly 30% of homes listed for sale that are vacant. Are they former Airbnbs, second homes, or properties listed to dodge the vacancy tax? It’s a fascinating trend that raises more questions about the current state of the market.
And to cap it off, we’re excited to showcase a stunning family home on Vancouver’s prestigious Golden Mile in Kitsilano. Located on West 1st Avenue, this property boasts breathtaking ocean views, over $1 million in renovations, and one of the most luxurious primary suites you’ll ever see. Don’t miss this incredible listing—check it out at www.3262W1st.com
_________________________________
Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife
Dan Wurtele, PREC, REIA
604.809.0834
Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com