Economy Blogs

Economy Blogs · 23. June 2020
In their June 2020 Mortgage Rate Forecast, BCREA highlights include: Mortgage rates fall to record low. Canadian economy in recession, but is a recovery on the horizon? Bank of Canada hits its effective lower bound...again. In an effort to halt rising mortgage rates, the Bank of Canada (BOC) lowered its overnight lending rate to its effective lower rate of 0.25%. In addition, the BOC and CMHC purchased billions in mortgage backed securities. "The Canadian average 5-year fixed rate now sits at a...

Economy Blogs · 07. June 2020
In their June 5, 2020 Economics Now release BCREA (BC Real Estate Association) reported on the employment levels for Canada and BC. For Canada, employment grew by 290,000 jobs in May (1.8% over April) gaining back 10% of the jobs lost since the pandemic was declared. Plus the number of workers who had their hours decreased decreased by almost 9%. However, the unemployment rate rose by 0.7% to 13.7% since April as more people started to look for work. Compared to May 2019, Canadian employment...

Economy Blogs · 11. May 2020
Sharp increase in unemployment due to COVID-19.

Economy Blogs · 01. May 2020
In this BMO Article they examine the four different recovery curves for the economy from a recession. While the article is based mostly on economic data from the States, I believe the concepts would apply here. They also include a probability for each curve. On the one hand, I like to think that we have done a better job flattening the COVID-19 curve than they have in the States and are more likely to see a V curve (the best outcome). On the other hand, Trump can be reckless and is pushing to...

Economy Blogs · 17. March 2020
In their Market Intelligence report, BCREA (BC Real Estate Association) has developed four scenarios that examine potential outcomes on the housing market considering changes to the economy due to COVID-19 and whether or not the announced changes to the stress test are implemented. The changes to the stress test, moving the qualifying rate from the 5-year posted mortgage rate to the average 5-year fixed rate plus 200 basis points (2%), were due to take effect on April 6th, but have been...

Economy Blogs · 19. December 2018
After accurately forecasting the rise in mortgage rates since the summer of 2017, the BCREA Mortgage Forecast for December 2018 is suggesting there may be a pause in the increase of interest rates. BCREA states in the forecast: "Midway through 2018 everything seemed to be pointing to sharply higher mortgage rates. The Canadian economy was soaring, the Bank of Canada and its counterpart in the US were resoundingly hawkish and bond yields were testing multi-year highs. However, declining oil...
Economy Blogs · 07. December 2018
BCREA announced that the Bank of Canada elected to leave its overnight rate at 1.75% rather than continuing the Bank's objective to "normalizing" its policy rate to between 2.5% and 3.5%. Reasons cited for the decision included that the economy will be challenged by Alberta's cutbacks in oil production. Other factors include the announced shutdown of GM's Oshawa plant, slowing housing market across Canada and a potentially sharp slowdown in US economic growth next year. Given these factors and...
Economy Blogs · 22. February 2018
Within the 2018 Budget announced February 21st, is a section titled Homes for BC. This includes "a 30-point plan for housing affordability in B.C." Minister of Municipal Affairs and Housing, Selina Robinson, states; "Home prices didn't spike overnight, and our housing problems can't be fixed with a single budget. It will take years of sustained action to bring housing affordability home." In a release BCREA disagrees that these moves will bring stability to the markets. Here they note the...

Economy Blogs · 17. January 2018
After years of warning that interest rates will increase, that finally started to happen in the in 2017 and really took hold the last half of the year. On January 17, 2018 the Bank of Canada announce its third 25 bases point increase in its overnight rate bringing it to 1.25%. Bond yields have been on the rise as well, affecting long term fixed mortgages.

     About Gerry                                         Service and Integrity Above All

Information and Interpretation
Selling or buying real estate is a major financial endeavour with many factors to consider. While you have a wealth of information available to you on the internet, interpreting that information is another matter.

This is where I come in. Not only do I research and provide you the information you need, I take it to the next level and analyze and interpret that  information for you. I will tell you what I think, what we do is up to you.

As a client, your Realtor works for you, and this is a principle I hold dear.  I see my job as providing you with information, interpretation, services and guidance, not to push you on a course of action.

Unparalleled Service
I have a simple code, I don't sell, I service. I assume my clients are perfectly able to make their own decision once they have the information they need. I spend my time providing information, guiding people through the process, and making sure all the bases are covered, not in high pressure sales.

Over the years I have received very complementary feedback from clients. See Client Feedback.

Integrity, simply defined, is being honest and fair. This is further enhanced by one of a Realtor's prime duties, which is not to put anyone's interest above their clients, including their own.  This a duty I take very seriously. My personal outlook after over 30 years in business, is that whenever I experience high pressure sales I start to question the integrity of the person selling me.  Are they looking after my best interest or theirs?

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