As the overnight rate began its ascent in March 2022, Canada’s unemployment rate sat at 5.3%. Amazingly , as the Bank’s policy rate rose by 425 basis points into the spring of 2023, the country’s unemployment rate actuallyMeanwhile, against the backdrop of elevated mortgage rates — the likes of which had not been seen in a generation — home prices began rising again.
We know our central bank wants to bring interest rates down from their currently-elevated level when the time is right, and — finally — a justification to do so is emerging. A moderation in home prices is also likely to follow in the near-term, as a consequence of a weakening labour market, particularly here in Metro Vancouver. This will help to bring some balance to an historically expensive housing market in the southwestern corner of BC.