rennie landscape Fall 2023

the rennie landscape KEY INSIGHTS - FALL 2023

This pocket guide presents a summary of key insights associated with the Fall 2023 edition of the rennie landscape, a report focussed on unpacking the myriad factors directly and indirectly influencing Metro Vancouver’s housing market. While much remains as it was 6 months ago when we published the Spring 2023 edition of the rennie landscape, macroeconomic conditions are starting to evolve in response to our higher interest rate environment. The labour market remains healthy, and debt loads are being managed—for now—but cracks are starting to appear. Population growth fueled by immigration has been the driving force

in the economy of late, but it has also masked some underlying areas of concern. Below is a summary of the highlights from this edition of the rennie landscape.

rates INFLATION IS WORKING ITS WAY BACK TOWARDS THE BANK'S TARGET RANGE, while interest rates are at their highest level in two decades, with the Bank of Canada policy rate at 5.00%. Inflationary pressures are typically higher in the first half of the year, which has implications for the headline inflation rate in the coming months. Canada and the United States have taken relatively hawkish monetary policy stances relative to the European Union. economy WHILE LABOUR MARKETS REMAIN HEALTHY OVERALL, THEY'RE BEGINNING TO BEND: the unemployment rate is on the rise, while other indicators also hint at a softening. Real wage growth has moved into positive territory, while job vacancies and the job-change rate are falling. The deepest inverted yield curve in 30 years, and amplified bond yield volatility, point to the possibility of a recession.

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