The Saretsky Report. May 2019

Steve Saretsky -

It came later than expected But the spring market finally arrived in the city of Vancouver. The month of May was the busiest month this year, at least in terms of sales volumes. However, while sales volumes increased month over month this was still one of the slowest months of May we have ever seen. Sales declined 8.4% yearover-year to their lowest total since May 2000. This allowed inventory to continue building, up 10% from last year, and kept downwards pressure on prices across all segments. Developers are reporting continued weakness at pre-sales centres across Greater Vancouver, this is making it more difficult to obtain construction financing and thus more projects continue to be cancelled. As a result, developers have slowed new land purchases, land transactions fell nearly 50% year-over-year in the first quarter. This will have knockon effects on the BC economy as new housing starts slow and future projects in the construction pipeline begin are reduced. We believe the pre-sale market is a leading indicator of the real estate and construction sector which makes up nearly 25% of GDP in the province.

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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