INTEREST RATES
Canada’s Overnight Rate climbed steadily to 4.50%; a level not seen since November 2007. With short-term rates rapidly and artificially propped up, Canada’s yield curve has become inverted over the past several quarters, indicating a very likely upcoming policy-induced recession.
INFLATION
Inflation is trending down overall, but it remains elevated for services. With vacation season here, a tight labour market and a stronger than anticipated economy, the Bank of Canada could implement an additional rate hike to limit spending on services.
GDP
Bottom line: Canadian GDP remained resilient in Q2. But growth is starting to look weaker by the end of the quarter – wholesale sales posted one of the largest declines in history in June. The resilience in consumer demand we’ve seen to-date is not to be overlooked, adding to sticky inflation pressures.
THE HOUSING MARKET
The Canadian housing market experienced a “huge” second quarter (Q2), surpassing expectations with soaring home sales and average prices. However, economists at TD Economics are cautioning for a potential decline in sales during the latter half of 2023, which could reverse part of the market’s recent strength.
Download the FULL REPORT below to explore the characteristics, economic drivers, current real estate trends, development activity and new product sales in Multifamily in the sub markets of Mission, Abbotsford, Maple Ridge and Pitt Meadows.
