I have just received and read the Edward Jones 2020 Outlook: The Year’s Top Investment Questions and their Quarterly Market breakdown for 2020. A few points stood out to me as relevant for Whistler property owners and potential buyers.
1. The Canadian economy is likely to avoid recession; Consumer spending as a key driver of growth in 2020
Solid consumer spending and a healthy labour market, combined with a recovering housing market and low interest rates are likely to aid in the continuation of the current economic expansion. With inflation likely to stay at the Bank of Canada’s target rate, the central bank is unlikely to raise interest rates. These factors including low mortgage rates plus population growth are expected to continue to help the housing sector and Canadian property owners and buyers alike.
2. US politics may be a source of volatility, however election years have typically been positive for the market
There is no reason to expect any different in this election cycle, and these election headlines are not long term market drivers in any case. Again, low unemployment, tame inflation, supportive policies from the Bank of Canada, are set to outweigh any short term political turmoil, which is beneficial to our real estate market here in Whistler.
3. Canadian household debt is a threat, but it is not without a light at the end of the tunnel
Canadian household debt is a threat to the economy as it has hit a new high, however, rising wages and rock bottom interest rates are expected to slow the growth in household debt and eventually reverse it. Consumer spending, previously weighed down by this debt, is expected to turn around and support the economy, as indicated in point 1 above.
4. Canadian currency likely to remain stable in the world market.
In turn, this means our American counterparts will continue to get more bang for their buck, so to speak, in our resort community. Additionally, Canadian buyers will likely want to spend their money at home, rather than south of the border, where their dollar is worth less.
If you have any questions about your Whistler property, investment, or you are looking to buy in our beautiful resort, please don’t hesitate to reach out to me. I am happy to help!