The Saretsky Report. February 2019

Steve Saretsky -

Housing markets are somewhat similar to a cruise ship trying to pull a U-Turn. They are painfully slow at changing course and generally once the ship has begun turning in a particular direction it is not simple to revert back. Thus, without sounding like a broken record, the trend for the Vancouver housing market remains in tact, one in which sales remain historically weak and prices continue to descend lower. In Vancouver home sales across all property types fell 36.5% year-over-year and was one of the worst February’s on record from a sales volume perspective. One could certainly argue these are unprecedented times, one in which an entire generation of have never seen sales volumes this low. It should come as no surprise that prices are trending lower across all property segments. This abrupt slowdown in housing will have knock-on effects and we are beginning to see that reflected in Canadian GDP numbers, the economy has contracted in three of the past four months as of December. So what does the Spring market have in store for us? Let’s take a look.

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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