The Saretsky Report. July 2019

Steve Saretsky -

As we had been calling for the past few months, Greater Vancouver home sales had likely bottomed and we would soon begin to see year-over-year increases. This was indeed the case in July, where home sales bounced, jumping 23% year-overyear. While the large increase in sales is certainly significant, it is also important to contextualize the increase. Last year ( July 2018) was the slowest month of July in eighteen years. Therefor, it was highly unlikely we would see sales weaken further. Instead, we saw sales increase, although still below the 10 year average for the month, while prices continued to inch lower. It appears lower prices, along with falling mortgage rates have certainly encouraged some buyers back into the market. Further, the labour market remains relatively strong, allowing willing buyers to obtain a mortgage and or leverage up in the housing market. However, overall market conditions remain very volatile with some segments exuding significant weakness, while other more affordable segments of the market remain much more resilient. Let’s unpack the month of July further.

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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