RENNIE OUTLOOK 2020
WAGES
Tight labour market conditions provincially and locally have resulted in BC’s median weekly wage rate (for full-time positions) increasing by 6.8% on an annualized basis through January 2020—the second-fastest growth in Canada, behind only Ontario’s 7.7%. Lead by growth in tech sector wages, as well as those in finance and real estate, this is more than three times the annual average growth achieved in the past half-decade and considerably faster than consumer price inflation, translating into healthy real wage improvements.
OUR 2020 OUTLOOK With there being little upward pressure on consumer prices given relatively modest expectations of provincial GDP growth in 2020, combined with tight labour markets, we see BC’s annualized rate of real wage growth remaining in the neighbourhood of 5.0% over the coming year.
WAGES
INTEREST RATES
After months of stable and low interest rates due to a steadily growing national economy, we have now entered a period of elevated uncertainty and market volatility. With fading expectations for global economic growth due to the ongoing health crsis, short-term and long-term rates will decline from current levels through the remainder of 2020.
OUR 2020 OUTLOOK By the end of 2020 we expect the Bank of Canada’s policy interest rate to be between 0.75% and 1.25%. Should mortgage rates follow in lock-step, household purchasing power would rise by between 4.2% and 8.3% as a result.
INTEREST RATES
Copyright © 2020 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of January 6, 2020. All data from RealEstateBoardof Greater Vancouver and Fraser Valley & Rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E. 8
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