credit & debt
THE VOLUME OF MORTGAGE ORIGINATION AND EXPANSION REMAINS HIGH FOR NOW, driven recently by ultra-low variable mortgage rates in particular. Debt-service ratios remain in check and may well continue to be even in an era of higher interest rates—so long as incomes continue to rise. Delinquent mortgages are currently almost non-existent in BC.
demographics BRITISH COLUMBIA’S POPULATION IS GROWING UNABATED, attracting people from throughout Canada and abroad. Expect this trend to continue, particularly on the international front. This will help to support and stabilize local labour and housing markets, especially those with diverse in-migrant origin bases. housing A PRIMARY DRIVER TO AVAILABLE HOUSING SUPPLY IS THE UNEMPLOYMENT RATE, with history showing a strong positive relationship between the extent to which residents are working and earning incomes (in aggregate) and the scale of total listings in the resale market. More rental housing is needed in Metro Vancouver, which means we need a lot more condos and purpose-built structures to be added to the current stock. policy A NEW ERA OF HOUSING MARKET INTERVENTIONS HAS BEEN USHERED IN in response to the run-up in home values over the past 18 months. Many of these policies are set to come into force at the beginning of 2023, though none are predicted to be overall market influencers. To the extent they serve to protect individual housing market participants, they are applauded.
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