DATE

Money pit

Vancouver Condo Prices Increasing Over 2% Per Month

Steve Saretsky -

Vancouver Condo Prices Surging to New Highs In 2017

It looks like another leg up for the Vancouver condo market. Last week I mentioned condo sales were 22% above the 10 year average in May. Couple this with the fact inventory is down 18% year over year and it’s a recipe for disaster.

Vancouver Condo Inventory
Vancouver Condo Inventory at Record Lows

First time buyers are rushing into the market, and in an attempt to keep up with prices are having to get creative with financing, including help from Mom and Dad.  Free money from the BC Government has only made matters worse, the program has now approved an additional 327 first timers in Metro Vancouver.

It appears official, Vancouver condos have lost all price discovery. Buyers are paying any price imaginable in order to secure a piece of the pie. Previous sale comparisons seem virtually irrelevant. Multiple offers are now expected on any unit below $1 million. A competitive frenzy that makes last year look tame, is pushing prices to all time highs. Vancouver condo prices are currently increasing at a rate of 2.2% per month since January, 2017. Well ahead of the 12 month rolling average of 1% per month.

Vancouver Condo Prices
Vancouver Condo prices growing 2.2% per month in 2017.

It appears onwards and upwards… For now.

Join the Monday Newsletter

Every Monday morning you'll receive a short and entertaining round-up of news on the Vancouver & Canadian Real Estate markets.

"*" indicates required fields

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...

Get the Saretsky Report to your email every month

The Saretsky Report. December 2022