Spring Time Inferno

Steve Saretsky -

FOMO Alive and Well in Vancouver Condo Market

It’s never over till it’s over and as i’ve mentioned in previous posts (Bottom of the Barrel) it’s far from over. Yep the condo market in Greater Vancouver has been set ablaze. I’m sure you’re sick and tired of hearing about it, just as many Realtors are, it’s why many are no longer cheerleading the market.

Multiple offers continue to ravage the market, decimating the pocket books of buyers and rewarding the few sellers who take a once in a lifetime opportunity to cash in. Of course i’m talking about the condo market, sorry detached sellers your time has come and past.

So far condo sales in March resemble that of trench warfare. A bloody mess of multiple offers and not so civil behaviour. In Richmond, 53% of condos have sold over asking, followed by 54% in Vancouver East, 46% in Vancouver West and Burnaby.

Yes the FOMO still runs strong in the Vancouver condo market, pushing prices to new highs. It’s what the investing world calls loss aversion. Best summarized as “loss aversion refers to people’s tendency to prefer avoiding losses to acquiring equivalent gains: it’s better to not lose $5 than to find $5. Some studies have suggested that losses are twice as powerful, psychologically, as gains.” 

Don’t count us out just yet Toronto.

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The Canadian Economy

Steve Saretsky -

Happy Monday Morning! We got a string of new data this past week confirming inflation in consumer goods, and housing are proving to be more than transitory. Canada’s consumer price index continued to drift higher with prices hitting an 18 year high, up 4.7% from last October. The recent floods in BC...

Steve Saretsky -

The calls for impending interest rate hikes continues. CIBC’s chief economist, Benjamin Tal, was out recently suggesting the Bank of Canada could hike its benchmark interest rate at least six times beginning in early 2022. “I think there is a risk of getting into the market at today’s rates,” noted Tal....

Steve Saretsky -

The BC Government announced it is looking at several cooling measures for the housing market in 2022. They have highlighted two measures. The first is an end to the blind bidding process, and the other is a mandatory “cooling off period” which will allow any buyer a 7 day recession...

Steve Saretsky -

The Bank of Canada continues to slowly drain liquidity after flooding the system with a firehose of cash during the pandemic. Bank of Canada governor Tiff Macklem announced the end of Canada’s QE program (also known as money printing). Furthermore, in Macklems words, “We expect to begin increasing our policy...

Steve Saretsky -

Consumer price inflation ripped higher in September, surging 4.4% year-over-year, the fastest pace of price increases in 18 years. Let’s discuss this further. We have an inflation problem and the Bank of Canada remains of the view that inflation will be transitory. Although they really can’t say otherwise, for if...

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The Saretsky Report. December 2022