The Saretsky Report. February 2020

Steve Saretsky -

We start this one off similar to last month. A bounce in activity, pushed sales higher, jumping 45% from last year, while inventory levels plunged by 23%. As the old saying goes, “supply and demand.” This pushed the benchmark price up 0.3% year-over-year, the first annual increase since October 2018. While this recovery is certainly encouraging for those who have a financial interest in the real estate market, a word of caution is warranted. Demand, a key function of the supply and demand equation, looks increasingly volatile. The recent outbreak of the Coronavirus has reached pandemic levels, although not officially dubbed so just yet. As schools close, corporations suspend travel, and consumers avoid public settings, the economic effects will be wide ranging. Policy makers are well aware of this, and the recent G7 emergency meeting only created further panic. Apparently there isn’t a cure interest rates can’t solve, including global pandemics.

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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