the rennie landscape - Q3 2019

credit & debt CANADIAN HOUSEHOLD DEBT SERVICE RATIOS HAVE BEEN RISING due largely to increasing borrowing costs and mortgage debt. The ongoing decline in interest rates should provide some relief in the near-term, however. demographics POPULATION GROWTH IN CANADA, BC, & METRO VANCOUVER IS STRONG due to continued inflows of international migrants. This is not the case worldwide, with Europe and Japan’s working-age populations already declining, and China’s set to begin shrinking within 5 years. This underscores both the benefit of Canada’s innovative immigration strategy and the need to invest in people and technology to keep the economy growing. housing NEW HOME SUPPLY IS ON THE RISE, reflecting a buoyant pre-sale environment that extended into 2017. Demand continues to be driven by the resident population in Metro Vancouver, with foreign buyers accounting for only 1.2% of residential transactions in this region. policy CENTRAL BANKS ARE BECOMING DOVISH in response to global economic and political uncertainty that is slowing growth. By the end of 2019 expect the Bank of Canada and the Federal reserve each cut rates by 25 basis points from their current levels in an effort to stimulate the North American economy.


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