ECONOMIC OUTLOOK
Newspaper clipping- Why Smart Money is Buying single family homes. April 2024.
“Single Family Homes are likely to increase in value faster than multifamily homes making single family homes attractive. More multifamily homes are being built than single family homes and this trend is at a 40-year low and is not likely to change. Most advisors/economists project higher house prices this year despite unaffordability. A shortage of SFDs together with rising incomes should lead to rising single family dwelling prices, as rates ease. Jump in, don’t wait for “lower rates” as everyone’s doing that and once the rate drops demand rises and so do prices. Inflation’s expected to fall further, and rates are expected to fall too, this summer so 2024 offers a short term window for middle and upper middle class buyers to afford houses”.
Vancouver Sun article (30 April 2024)-Hot US inflation throws curveball to Bank of Canada on interest rates-Hawkishness by Federal Reserve threatens predicted June decrease.
“The Bank of Canada’s upcoming interest rate decision just got more complicated after US economic data out this week showed growth slowed while inflation remained elevated. US GDP for the 1st Qtr. came in at 1.6% rather than projected to come in at 2.5%. Core inflation climbed 0.3%. Too wide a spread between US and Canada interest rates could hurt the Canadian dollar. Europe is expected to reduce interest rates in June. Maybe we can reduce in June then stop for while”.