rennie landscape - victoria spring 2024

Thank you for taking the time to read the Spring 2024 edition of the rennie landscape. Springtime is often associated with rebirth, renewal, and a general sense of optimism, and there is indeed a feeling of optimism around our local housing markets today. Almost all of that optimism, however, is centered around an outlook of declining interest rates. This means that all eyes are focused on the Bank of Canada, with the conversation shifting from “if” they will cut their policy rate to “when” and “by how much”. The reason there is confidence that the Bank will be cutting interest rates is that we have an economy that has, in fact, responded to restrictive monetary policy. Inflation has dipped back inside target range and is falling, the labour market has softened, consumers are spending less on goods and services, and more than they ever have on servicing debt. Canada’s population continues to grow by leaps and bounds, and while that has some positive benefits, particularly for our labour force, it has been putting stress on our undersupplied housing markets, especially rental housing. So where do we go from here? To answer the question of when the Bank of Canada will cut interest rates we need to watch inflation, at least for a little while longer. We also need to keep an eye on what’s happening in the US as our neighbour and largest trading partner factors greatly into our circumstances, as well as the myriad of macroeconomic and demographic data we explore in this latest edition of the rennie landscape. We hope you find it useful and interesting, and it helps you navigate the complexities of the day.

Ryan Wyse MARKET INTELLIGENCE MANAGER & LEAD ANALYST rwyse@rennie.com

Ryan Berlin VP INTELLIGENCE & HEAD ECONOMIST rberlin@rennie.com

rennie.com

1

Made with FlippingBook - professional solution for displaying marketing and sales documents online