The Saretsky Report. January 2019

Steve Saretsky -

The housing market started the new year off with a thud. There was no dead cat bounce this month as home sales across all property types declined, slipping to a 10 year low. Indeed, it was not the start home sellers had been looking for. New listings far outpaced the number of sales, pushing inventory higher and home prices lower. Mortgage credit growth continued to decelerate dropping again in the month of December as per the Bank of Canada. With mortgage credit growth slumping to a 35 year low there remains little desire from policymakers to amend the mortgage stress tests despite industry opposition. The market has, however, received a glimmer of hope in the fact that the five-year Canada mortgage bond has plummeted nearly 70 basis points as of this report, and has pushed down five year fixed mortgage rates by about 10 basis points. The Bank of Canada appears to be on hold at least for now and with economic data beginning to sour they could be on hold for good.

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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