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The Bank of Canada announced on December 2nd, 2015 that it was keeping its trend-setting target overnight lending rate at 0.5 per cent.

Helped by interest rate cuts earlier this year, the Canadian economy rebounded in the third quarter of 2015 from two previous consecutive quarters of negative economic growth. However, the Bank expects “[economic] growth to moderate in the fourth quarter of 2015 before moving to a rate above potential in 2016.”

The Bank’s latest Monetary Policy Report published in October pegged the rate of potential Canadian economic growth in 2016 somewhere in the range 1.4% to 2.2% and forecast economic growth above that starting in the second quarter of 2016. Time will tell whether the Bank will need to further downgrade the outlook for economic growth, as it has repeatedly in recent years.

Economic growth and inflation outlooks are crucial to the timing for when the Bank will begin to raise interest rates.

In recent months, Canadian economic growth has gained strength in non-resource sectors, which are getting a boost from a weaker Canada-U.S. currency exchange rate. By contrast, resource and their supporting industries continue to face major headwinds, with oil-producing regions contending with weak oil prices, lower investment and job layoffs.

Headline inflation continues to trend near the bottom of the Bank’s target range of between 1 and 3 per cent due to persistently low oil prices. Core inflation (which strips out the most volatile price components of overall inflation) remains on target. Below the surface, the inflationary impact of the lower Canadian dollar is being offset by a growing disinflationary gap between actual and potential economic growth.

Based on the Bank’s current forecast for economic growth and inflation, financial markets are currently betting that the Bank of Canada will keep interest rates on hold throughout 2016.

As of December 2nd, 2015, the advertised five-year lending rate stood at 4.64 per cent, unchanged from the previous Bank rate announcement on October 21st, and down 0.15 percentage points from one year ago.

Simon Fraser
Market Update

Simon Fraser Condos

Altaire by Polygon

Altaire built in 2008/2009 reaches higher then any other condo building in Metro Vancouver offering panoramic views.

Novo I by Intergulf

Novo I built in 2007 known for the amazing sight lines and views from most units and balconies up to 1000 sq ft.

Novo II by Intergulf

Novo II built in 2007 known for the amazing sight lines and views from most units and balconies up to 1000 sq ft.

Aurora by Polygon

Aurora built in 2006 with 103 condos featuring 36 unique floor plans ranging from 715 sq ft to 1500 sq ft.

One University by Millennium

One University built in 2005 is UniverCity's flagship building with luxury homes featuring semi private elevators.

Harmony by Polygon

Harmony built in 2005 was the first condo development at Univercity & as a result offers a unique setting & views.

Serenity Townhomes by Polygon

Serenity is a collection of 2 bedroom townhomes of 1100 sq ft ranging to 4 bedroom 2000+ sq ft townhomes.

The Hub by Liberty Homes

The Hub built in 2009 is set atop Nester's Grocery and steps from High Street giving these homes an urban feel.

Verdant by VanCity Enterprises

Verdant is a two storey town home building built with environmental design and stylish living spaces which complement the modern exterior of these SFU homes.

Origin by Porte Development

Origin is designed by GBL Architect & BYU Interior Designs, developed by Porte Development Corp. and marketed by Red Dot Real Estate.

Nest by Mosaic

Located on UniverCity High Street across from the new University Highlands elementary schools this refreshing building will add further depth to a growing community.

Highland House by Liberty Homes

A 12-storey concrete high-rise development and targeted towards Rental Investors and First-Time Condo Buyers.

Lift by Porte Development

Lift will be a wood frame building comprising of 56 homes. Building technologies, environmental features, and price points should be similar to Origin.

Altitude by Hungerford Group

Altitude will be a 2 tower development comprising of a 12 and 14 story building with a total of 210 strata units.

CentreBlock by Liberty Homes

CentreBlock at UniverCity atop Burnaby Mountain is the latest condo project with sales commencing early 2014. .

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