Welcome back to another episode of Make Money Count! This week, we discuss some crucial economic topics like the decline in bond yields, a surge in real estate listings, and economic challenges like rising unemployment and high interest rates. Whether you are a prospective homebuyer, a real estate investor, or just keen to understand the financial landscape, this episode is packed with valuable information. 

Episode Highlights

Bond Yields and Mortgage Rates

In this episode, we discuss the recent decline in bond yields. Marcus explains how this movement is good news for mortgage rates and what it means for prospective home buyers and the broader housing market. We also talk about the connection between bond yields and economic sentiment, highlighting how current consumer attitudes, or “stinking thinking,” reflect broader economic challenges.

The Surge in Real Estate Inventory

Next, we address the massive influx of new listings in the real estate market. Despite a recent 25 basis point rate drop by the Bank of Canada, there’s been a significant increase in sellers entering the market. We explore the reasons behind this surge, the impact on housing prices, and the potential future scenarios if interest rates don’t decrease further. Marcus provides a detailed analysis of reports from the Toronto Real Estate Board and RBC Economics, painting a comprehensive picture of the current supply-demand dynamics.

Unemployment, Inflation, and the Future

Finally, we examine the broader economic headwinds that are influencing the real estate market and the overall economy. Rising unemployment, high interest rates, and the anticipated slowdown in immigration are just a few of the factors contributing to the “stinking thinking” among Canadian consumers. We discuss the potential long-term effects on the housing market and the economy, highlighting the urgent need for interest rate cuts to stabilize the situation.

Be sure to tune in to the entire episode for a comprehensive discussion and expert analysis from Marcus and Justin. Don’t forget to subscribe to our YouTube channel and follow us on social media for more updates!