The Saretsky Report. December 2018

Steve Saretsky -

December was another quiet month for the Vancouver real estate market. Home sales continued to decline, dropping 44% year-over-year across all property types. Total sales fell to a 10-year low for the month of December, just slightly higher than the post financial crisis lows of 2008. While new listings remain low, suggesting home sellers may be holding off for better times, inventory continues to edge higher as buyers move to the sidelines and liquidity contracts. Despite all the discussion around strong economic growth in BC and robust population growth, Vancouver home sales finished 2018 with the fewest annual home sales in 18 years. I believe there is more to this than a few demandside policies, but rather a draining of global liquidity as the US Federal Reserve continues to unwind its balance sheet and China’s economic growth and money supply decelerates.

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The Canadian Economy

Steve Saretsky -

As we expected and discussed in last months report, the Bank of Canada raised interest rates another 50bps in October. Markets were pricing in a 75bps rate hike but the Bank of Canada failed to deliver, citing growing concerns around financial stability. It’s the first time in awhile they have...

Steve Saretsky -

It was another slow month for the Greater Vancouver housing market in September. While housing activity was historically low, there is still much to talk about across the housing spectrum. The volatility across global financial markets has been extreme and that is no doubt having a major influence on our...

Steve Saretsky -

There’s always lots to talk about in the Vancouver housing market, especially these days. We have plenty of updates this month on interest rates, trigger rates, and the investor/ rental market. Housing activity remains on the same course it’s been on over the past few months. Greater Vancouver home sales...

Steve Saretsky -

Continuing on the theme from last month, housing activity continues to slow as expected when the Bank of Canada raised interest rates by 100bps last month and instantly reduced borrowers purchasing power. Remember, over 50% of new mortgage applicants this year have been going with variable rate mortgages, in large...

Steve Saretsky -

I’m a bit later than usual in writing this report and it’s probably for the best. As of this writing on July 13th, the Bank of Canada raised interest rates a monstrous 100bps, the single largest increase since 1998. This will have significant ramifications for the housing market, not just...

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The Saretsky Report. December 2022