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.