The Vancouver Life Real Estate Podcast

This week, we’re examining how key economic indicators, policy changes, and market trends are influencing everything from interest rates to housing affordability. Inflation has officially returned to the Bank of Canada’s 2% target, but what does this mean for the direction of interest rates heading into 2025? The Bank faces a delicate balancing act with inflation on target, GDP revisions upward, and the U.S. economy remaining strong. Projections suggest we’ll see modest rate cuts early in the year, stabilizing at an overnight rate of 3% by March. Homeowners renewing mortgages in 2025 should plan accordingly, as this will still translate to higher payments compared to the historically low rates of recent years.On the international front, the potential effects of a Trump presidency loom large over Canada’s economy. Historically, Canada has avoided recessions during periods of U.S. growth exceeding 2%, suggesting some economic resilience. Trump’s focus on energy infrastructure could revive projects like the Keystone XL pipeline, boosting Alberta’s energy sector, while a weak Canadian dollar might attract foreign investment into commercial real estate. Additionally, changes in U.S. immigration policy could prompt an influx of skilled workers into Canada, potentially offsetting recent adjustments to our own immigration targets.Closer to home, the housing market is facing mounting pressures. Despite ambitious governmental promises to build 3.9 million homes over the next seven years, housing starts have dropped sharply—down 12% nationwide and 30% in British Columbia year-over-year. Compounding this, delayed projects and developer insolvencies, like THIND’s high-profile collapse, are exacerbating the supply crisis. THIND’s troubles have halted thousands of planned units, underscoring the strain that rising interest rates are placing on even established developers. This ongoing shortfall in housing starts signals a grim future, with significant shortages expected in completions by 2027-2029.Mortgage renewals are another pressing issue, with 23% of all existing Canadian mortgages set to renew in 2025 and 31% in 2026—above the typical annual renewal rate of 20%. For Vancouver homeowners who locked in rates as low as 2% in 2020, the shift to today’s rates could mean monthly payment increases of nearly 30%. However, the average 21% appreciation in home values over the past five years offers a potential safety net, allowing homeowners to downsize while preserving some equity and solvency.From inflation and interest rates to housing starts and developer challenges, this episode covers the critical issues shaping Canada’s real estate future. Stay tuned as we break down what it all means for you, whether you’re a homeowner, investor, or industry professional. _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

This week, six critical factors emerged that could significantly influence the Canadian housing market in the coming months. First, Statistics Canada revised GDP figures upward, adding 1.3% growth between 2021 and 2023, equivalent to an entire year of economic activity. While this suggests a stronger-than-expected economy, it complicates the Bank of Canada’s recent rate-cutting strategy. Markets now anticipate a 0.25% rate cut in December, with a 60% chance of a larger 0.50% cut, which could stimulate housing demand.Second, the potential impact of Trump’s proposed tariffs looms large. Should tariffs reach 10-20%, they could shrink Canada’s GDP by up to 2%, reduce foreign investment, and deepen economic challenges. While lower growth may prompt further rate cuts, boosting housing sales and construction, broader economic instability could counteract these benefits.Meanwhile, rental rates have begun to drop, with a 1.2% national year-over-year decline—the first in years. Vancouver and Toronto saw the steepest drops, at 8.4% and 9.2%, respectively. This shift is driven by record condo completions, slowing population growth, and renters reaching affordability limits. Although rents remain 29% higher than three years ago, the decline provides some relief to tenants.In the U.S., inflation ticked up to 2.6% in October, its first monthly increase in six months, prompting markets to price in rate cuts from both the Federal Reserve and Bank of Canada this December. Lower borrowing costs could invigorate the housing market, setting up for a strong spring in 2025.October also saw a surge in national home sales, with Toronto leading the way with a 44% year-over-year increase. This spike is largely attributed to pent-up demand and renewed consumer confidence driven by expectations of lower interest rates. Early November data suggests this trend is continuing, pointing to a robust spring market ahead.Finally, a potential “mortgage war” is brewing as 50% of Canadian mortgages are set to renew in the next two years. With new rules allowing borrowers to switch lenders without requalifying, competition among banks is expected to intensify. Savvy homeowners stand to save tens of thousands of dollars by shopping for better rates, making it crucial to prepare for these opportunities now. _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

In October, Vancouver’s real estate market exhibited mixed signals. Despite a continued decline in home prices, with the benchmark HPI dropping for the fifth consecutive month by 0.6%, a surprising surge in sales emerged. Total sales jumped 43% from September and 32% year-over-year, marking October 2024 as the third-highest sales month of the year and the most active October since 2021. Experts suggest that the rate cuts so far, combined with optimism for further reductions, may have spurred buyers back into the market. This sentiment sharply contrasts with 2022 when rising interest rates deterred buyers.The recent U.S. election results, with Trump securing the presidency, bring significant economic implications for Canada. Key among these is the potential for new tariffs on Canadian imports to the U.S., which could add $30 billion in economic costs, with Canadian manufacturing and consumer prices bearing the brunt. This inflationary impact could strain housing affordability, as higher import costs would drive up construction expenses, potentially limiting new builds and pushing home prices higher. To counter these risks, the Bank of Canada might reduce rates further, which could increase Canadian homebuyers' purchasing power but also encourage some to enter the market amid potential economic downturns. Affordable housing targets in Canadian cities like Ottawa and West Vancouver face substantial setbacks due to escalating construction costs and financing issues. Ottawa has fallen short of its 500-unit annual goal every year since 2020, citing a funding gap of $931 million and a 150% increase in construction costs since 2021. West Vancouver also anticipates falling short of provincial targets, estimating that only 58 affordable units will be built in 2024—well below the province’s target of 220. This affordability gap points to ongoing challenges for both public and private sectors, with limited options for expanding affordable housing despite rising demand.The “17 Villages” initiative in Vancouver seeks to create a gentler approach to housing density, adding low-rise residential buildings, townhouses, and multiplexes within 400 meters of established retail streets. This feels like a European-inspired model that will anchor neighborhoods with walkable retail and community amenities, allowing young professionals and families to stay in these areas at potentially lower costs. Unlike high-rise developments, these “villages” aim to enhance neighborhood character, create small business opportunities, and offer diverse housing options without dramatically altering community aesthetics.Touching on the October stats, Vancouver’s real estate inventory fell by 7% month-over-month to a five-month low but remains 25% higher than last October and 26% above the 10-year average. With over 5,400 new listings—a 17% annual increase—the market has seen an influx of choices for buyers, while inventory is the highest for October since 2014. The sales-to-active listings ratio rose back to 19%, with townhomes and apartments now moving into seller’s market territory. Detached homes saw a slight uptick in demand, but overall, the market remains balanced, favoring neither buyers nor sellers strongly. _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

In a climate of economic turbulence, Canada’s economy is showing signs of a downturn that could significantly affect Vancouver’s real estate market. The Bank of Canada recently reduced its interest rate by 50 basis points, following weaker-than-expected inflation and a rise in business insolvencies. While these rate cuts may offer mortgage relief, they’re also weakening the Canadian dollar, which has hit a 20-year low against the U.S. dollar, potentially increasing imported inflation as time goes on. Meanwhile, Canadian GDP has remained stagnant, with annual growth forecasts now below 1%, well below the anticipated 2.8%. This slower growth could prompt further rate cuts as the Bank seeks to stimulate the economy.Employment trends are also concerning, especially among young men, with unemployment for this demographic rising sharply, indicating possible downward pressure on inflation. We touch on declining sales in manufacturing and a troubling inventory-to-sales ratio that's been further emphasized by the challenges facing Canada’s economy.Housing offers a mixed picture: as mortgage payments drop and rates fall, consumer confidence is on the move up. Sales volumes are expected to increase next year by 10%-20%, but the government’s recent immigration cuts could also reduce that demand, especially for rentals. The new targets project significant reductions in Canada’s temporary resident population, potentially leading to Canada’s first-ever years of negative population growth, impacting GDP, tax revenues, and the housing sector's stability. This would be a first for Canada after non-permanent residents hit an all-time high of 3 million people. The Vancouver housing market stands to be directly affected. Dropping interest rates may ease some home-buying pressures, but declining immigration and job losses in construction and housing services could lead to a long-term housing shortage and potential tax increases as governments try to offset reduced revenues. For buyers and renters alike, this evolving economic landscape could spell both opportunities and challenges, making it a crucial topic for those involved in Vancouver real estate.Also, we are welcoming your questions!! With these complex dynamics at play, what questions do you have about the market or where you find yourself today? Message us directly or post them in the comment section below, and we’ll provide informed insights in next week’s episode! _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

In this episode, the podcast hosts dive into one of the most transformative housing policies in British Columbia’s recent history—the Small Scale Multi-Unit Housing Initiative, introduced under Bill C44. This policy marks a significant shift in how housing developments are approached, aiming to address the critical shortage of homes in the Lower Mainland by automatically rezoning single-family and duplex lots to allow for higher-density developments. By opening up these properties for multi-unit construction, the policy seeks to tackle the housing crisis, create new investment opportunities, and provide much-needed jobs in the construction industry.However, the initiative has sparked heated debate. While it promises to inject new housing stock into the "missing middle" market, not all stakeholders are on board. Many neighborhoods have adopted a Not In My Backyard (NIMBY) stance, pushing back against the increased density and potential changes to their community dynamics. Some municipalities have leveraged the policy to increase Development Cost Charges (DCCs) and Amenity Contribution Charges (ACCs), which could make the process more expensive for developers, adding layers of complexity to what seems like a streamlined solution.To unpack the real opportunities and challenges presented by this policy, we are joined by James Livingston, founder of Lightwell Developments. As someone deeply embedded in the development space, James offers listeners a rare behind-the-scenes look at how companies like his are capitalizing on the deregulation. His firm specializes in working with homeowners who might not have the knowledge or the capital resources to redevelop their property on their own. James explains how Lightwell’s business model allows these homeowners to partner with developers by turning their properties into multi-unit dwellings and potentially earning more than they would through a traditional home sale—without the hassle of open houses, showings, or putting their home on the market.The episode then shifts to the criteria Lightwell Developments uses when scouting properties. James breaks down what makes a lot ideal for redevelopment, from its size and location to zoning regulations and municipal cooperation. The discussion moves beyond the homeowner’s perspective to explore the broader market implications of the Small Scale Multi-Unit Housing Initiative. While many developers, architects, and investors are enthusiastic about the changes, some argue that the policy doesn’t go far enough to meet future density demands. James provides his take on the policy’s strengths and limitations, discussing whether it can truly solve the housing crisis or if more drastic measures are needed to fulfill Metro Vancouver’s long-term housing requirements.To round out the conversation, the episode addresses another key audience—INVESTORS who may not own property but want to invest capital. James outlines the financial mechanics of investing in his multi-unit development fund, from expected returns to minimum investment amounts and typical timeframes. He provides insights into how this growing sector offers attractive opportunities for investors looking to diversify their portfolios and tap into the high demand for new housing in the region. _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

Inflation has cooled down, with a rise of just 1.6% in September, significantly lower than August’s 2.0%. Outside of the COVID-era disruptions, this marks the lowest inflation figure in 5.5 years, dating back to February 2019. Back then, the overnight rate was 1.75%, 2.5 basis points lower than today’s rate. The drop in shelter costs, which dipped from 5.3% to 5.0%, contributed to this inflation slowdown. However, the Bank of Canada’s core inflation measure, which excludes volatile components, remained steady at 2.3%.What’s striking is that this inflation print came in below market expectations of 1.8%, significantly reshaping interest rate forecasts. Analysts are now predicting a 70% chance of a 50 basis point (bps) rate cut at the BoC’s meeting on Wednesday, with a further 25 bps reduction anticipated for December. If this scenario unfolds, the overnight rate could end 2024 at 3.5%, and markets expect it to drop to 2.5% by October 2025. Such a drastic forecast has led many mortgage brokers to advise clients to consider variable-rate mortgages, anticipating a steady decline in rates over the coming year.At present, the BoC’s overnight rate stands at 4.25%, about 150-200 basis points above what is considered neutral. Given the state of inflation and a rising unemployment rate, there seems to be little reason for the BoC to delay a rate cut on Wednesday. This could also alleviate some of the pressure on Canada’s bond market which has been feeling the strain from high rates, though the Canadian dollar will be the sacrificial lamb.  Housing starts in Canada have taken a significant hit, dropping 16% year-over-year (y/y). In Vancouver, this trend is even more pronounced, with a 23% decline in year-to-date housing starts. Toronto fares even worse, with condo starts down by 70% y/y, marking a three-year low. With a rolling 12-month condo pre-sale figure of just 6,000 units—an all-time low—developers are pulling back hard on new construction. With construction costs still high and no immediate relief in sight, this reduction in supply is likely to exacerbate Canada’s already tight housing market in the long term.Another worrying trend is the increasing number of business closures. Last month, Canada saw a 1% drop in active businesses, the largest month-over-month (m/m) decline since the pandemic. The number of active businesses fell from 938,000 to 929,000, with construction companies leading the exodus—643 construction businesses shut down in September alone. This points to a broader economic slowdown, particularly in the housing sector, which is reliant on steady construction activity. New business openings also hit a four-year low, signaling reduced optimism among entrepreneurs.All eyes are now on the BoC’s rate decision on Wednesday. With inflation easing and housing construction slowing dramatically, a rate cut seems increasingly likely. However, businesses are still struggling, and new policies may be needed to stimulate growth and prevent further economic downturns. The BoC’s decision will set the tone for the remainder of 2024, and possibly 2025, as Canada navigates these uncertain times. _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

With the election just one week away, housing remains a pivotal issue for voters across Canada. This week, we take a close look at the New Democratic Party’s (NDP) housing policy, following last week’s review of the Conservative Party’s platform. The NDP’s 66-page action plan is packed with ambitious goals, focusing primarily on improving affordability for first-time buyers. One of their key initiatives allows first-time homebuyers to pay only 60% of a home’s price upfront, with the remaining 40% deferred until the home is sold or 25 years have passed. This program also offers government-backed supplementary financing, making it easier for Canadians to enter the market. In addition, the Attainable Housing Initiative (AHI) seeks to ease the burden of market-priced homes by funding 40% of the costs for 25,000 new units, particularly on Indigenous lands.While the NDP’s proposals aim to increase access to housing, they do little to address the root cause of the affordability crisis—soaring home prices. For example, even with the government’s assistance, buying a $620,000 studio or a $1.3 million two-bedroom unit in Vancouver remains daunting. Some argue that the plan, while helpful for thousands of families, fails to lower the overall cost of homes, especially in cities like Vancouver, where prices are already hugely inflated compared to other North American markets. The NDP’s strategy is focused on making market-priced homes more accessible, but it doesn’t tackle the larger issue of the unsustainable growth in housing costs.In other housing-related news, the Canadian Mortgage and Housing Corporation (CMHC) has announced a new policy that allows homeowners to add suites to their properties with up to 90% loan-to-value financing, set to launch in 2025. This move is part of an effort to increase housing density, but with a $2 million property value cap, its impact may be limited in high-cost areas. Meanwhile, rental rates have fluctuated across the country, with notable decreases in cities like Vancouver and Burnaby, while places like Quebec City and Saskatoon saw rent increases. Mortgage arrears are also on the rise, hitting 0.2% nationwide, the highest since May 2021, signaling growing financial pressures on homeowners.Speaking more to rental rates, they have shown significant decreases across several major Canadian cities. Vancouver saw an 11% drop year-over-year for both one- and two-bedroom units, and Burnaby registered similar declines. However, Quebec City and Saskatoon experienced price hikes, with one-bedroom rents rising by 22%. This fluctuation in rental prices suggests that affordability issues continue to evolve across different regions, with some areas benefiting from decreased demand while others face rising costs.As housing continues to be a central concern for many Canadians, both the NDP and Conservative platforms offer paths toward improved accessibility. However, neither party has yet introduced a comprehensive plan to lower home prices significantly. Voters must weigh whether these measures—focused on providing access rather than addressing affordability at its core—are sufficient in tackling Canada’s housing crisis as they prepare to cast their ballots. Tune in and find out how we feel about the NDP platform. _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

With the BC provincial election approaching on October 19th, housing policy has become a focal point for both major parties—the NDP and the Conservatives. Each party has released its housing platform, but the Conservative Party’s approach has sparked significant debate due to its "ambitious" tax-cut promises and plans to further streamline housing development.The Conservatives introduced the "Rustad Rebate," a tax cut that exempts rent, mortgage interest, and strata fees from BC income tax, starting at $1,500/month in 2026 and increasing to $3,000/month by 2029. While this would save a typical BC taxpayer around $105/month in its first year, critics argue that this rebate is a token gesture that does little to tackle the root causes of the housing affordability crisis.A standout promise is to drastically shorten the permit approval process, with a 6-month window for rezoning and 3 months for building permits. However, we have concerns over whether the province has the resources and expertise to enforce these timelines across multiple municipalities, particularly when recent efforts by Vancouver’s Mayor Ken Sim have shown limited success in expediting permits under a similar framework.Here are the Conservative Proposals in Brief:1. Rustad Rebate: Offers BC residents tax deductions for housing expenses, but savings are marginal compared to soaring housing costs.2. Permit Approval Timelines: Promises to expedite housing approvals but lacks clarity on implementation and enforcement.3. Repeal of NDP Regulations: Aims to remove certain building codes that allegedly increase construction costs but provides no detailed analysis.4. Support Transit-Oriented Communities: Emphasizes building complete communities near transit hubs, but developers already incorporate these elements without government mandates. So..?5. Infrastructure Fund: Proposes a $1 billion annual fund for municipalities, yet doesn’t address the revenue shortfall from proposed tax cuts. Where is the money coming from?September Market StatsThe latest market data for September is out and its status quo in the housing market as prices continue to drop. Key highlights include:The benchmark price dropped for the 4th month in a row, down 1.4% month-over-month and 7% below the peak in April 2022. At $925,000, the median price fell by $20,000, marking a total drop of $70,000 over four months.Despite rising inventory levels, buyer sentiment remains cautious as quality listings are limited. With election day approaching, it remains to be seen if either party’s housing plan can reverse this trend and provide relief to struggling homeowners and prospective buyers alike._________________________________ Connect With Us To Talk Real Estate:📆 https://calendly.com/thevancouverlife_________________________________ Investor Event DetailsAttendees can join via Zoom for free and $19.99 for the in-person Earls brunch (with mimosas!). Your Zoom invite link: https://us02web.zoom.us/webinar/register/2017234937769/WN_yAKmdWahQuO3nlHVVtQamg Your In-person invite link: https://www.eventbrite.ca/e/earls-yaletown-brunch-learn-real-estate-investment-summit-tickets-1007751209997?aff=DanRyan _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

This week’s discussion focuses on the current state of the housing market and its central role in the upcoming provincial election. With housing affordability and availability at critical levels, this issue has become a focal point for voters and policymakers. We’ll break down the latest developments, key political stances, and potential implications for homeowners and prospective buyers. The provincial election is just around the corner, and it’s no surprise that housing has emerged as the primary battleground. After decades of underbuilding, BC finds itself facing a severe housing shortage, with estimates indicating a shortfall of hundreds of thousands of homes. The current party in power, the NDP, has attempted to address this issue through various initiatives, such as the Missing Middle Policy and Transit-Oriented Area (TOA) regulations. These measures aim to increase density by allowing for multiplex units on single-family lots and permitting high-rise developments up to 20 stories near transit hubs.However, the path to achieving these goals is anything but straightforward. While the province has pushed these initiatives forward, many municipalities have been resistant. Cities like Langley, West Vancouver, and North Vancouver have outright rejected the Missing Middle reforms, opting to maintain lower density levels despite provincial pressure. Even in cities that have embraced the policy, such as Richmond and New Westminster, restrictive Floor Space Ratio (FSR) limits have made it economically unfeasible for developers to build larger multi-family homes, leaving the intended impact on housing supply minimal at best. Burnaby, on the other hand, has adopted the provincial rules and has positioned itself as a more builder-friendly environment. However, increased municipal fees have made margins razor-thin for developers, which dampens the enthusiasm for new projects. This lack of alignment between provincial aspirations and municipal realities has resulted in an unattractive building environment, hampering the overall effectiveness of these policies. To further complicate matters, the leader of the BC Conservative Party, John Rustad, has voiced strong opposition to the Missing Middle and TOAH reforms, labeling them as “crazy,” “authoritarian,” and “hardcore socialist.” He has vowed to repeal these initiatives if his party comes to power, which would potentially undo years of planning and hundreds of building permit applications that have been submitted to bring much-needed housing to the market.In regulatory news, the Office of the Superintendent of Financial Institutions (OSFI) announced this week that it will be easing stress test requirements for homeowners looking to renew their mortgages. The new policy, which goes into effect on November 21st, allows homeowners to do a straight switch to a new lender without undergoing the stress test, provided they are not looking to extend their mortgage’s amortization period.We finish up this weeks episode with a quick look into how the housing market performed in September as we tee up next weeks stats episode.  _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

This week has been monumental for Vancouver's real estate market, with several key factors influencing housing and the broader economic landscape. Inflation has officially hit 2%, marking a significant milestone for the Bank of Canada (BOC) as it reaches its target for the first time in nearly four years. While the broader inflation rate stands at 2%, if the mortgage interest component is excluded, inflation would be just 0.9%, signaling a rapid decline in core inflation metrics. However, rental inflation remains elevated at 8.6%, though this is expected to decrease in the coming months as rent prices have been falling for about a year, potentially pushing inflation even lower. As a result, markets are now pricing in rate cuts at every BOC meeting until at least the summer of 2025, with an estimated 1.75 basis points reduction by July 2025. The five-year bond, crucial for mortgage rates, is now trending downward at 2.7%, the lowest in over two years.On Wednesday, the U.S. Federal Reserve made a notable move by cutting its benchmark interest rate by half a percentage point, the first such reduction in over four years. This marks a shift from controlling inflation to supporting a slowing labor market. The Fed's decision to lower rates from 5.3% to 4.8% signals a major adjustment as inflation in the U.S. has fallen from a peak of 9.1% in mid-2022 to 2.5% in August, aligning closely with the Fed’s 2% target. Policymakers have indicated further cuts this year, with more anticipated in 2025 and 2026. Adding to the shake-up, the federal government of Canada announced that it will increase the price cap for insured mortgages from $1 million to $1.5 million, a surprise to both the industry and policymakers. While many in the real estate sector championed the change, it's important to examine who this adjustment really benefits. Although extending the amortization period to 30 years from 25 years helps reduce monthly payments by about 9%, it also increases the long-term interest paid by homebuyers, with an additional $80,000 paid over the life of a mortgage. More critically, this move likely pushes the price band of homes in this range up by 9%, doing little to address affordability. Historically, the CMHC was designed to help veterans and lower-income buyers, but this increase will likely push prices higher, benefiting banks and investors more than first-time homebuyers. With the minimum down payment on a $1.5 million home being $125,000, this policy change seems to cater more to affluent buyers, as only 15% of Canadian households could qualify for such a mortgage. Despite these hurdles, this adjustment will create more demand in the $1 million to $1.5 million price band, potentially driving prices higher, which contradicts the notion of increasing affordability.This week’s developments reflect the complex and often contradictory forces shaping the Vancouver real estate market. Inflation is cooling, but rate cuts are on the horizon, and new policies, like the increase in the insured mortgage cap, seem to be helping banks more than first-time homebuyers. Housing starts are down, and developers are grappling with higher fees, all while household debt continues to climb. The fall real estate market in Vancouver appears to be on shaky ground, and without significant changes to housing policy or economic conditions, the outlook remains uncertain. _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com