The Saretsky Report. June 2020

Steve Saretsky -

With lockdown restrictions essentially coming to an end, home buyers returned in June. After being suppressed in April & May, the two busiest selling seasons (on average), a wave of pent-up demand infiltrated the Vancouver housing market in June. Sales jumped 64% month-over-month and showed a positive increase on a year-over-year basis. However, once again we need to contextualize things. Basically what has happened here is that the spring market was put on pause, April and May recorded record low sales volumes and so the spring market was pushed to June and should continue in July and perhaps August. As we’ll get into later in the report, despite the “pentup demand” June sales were still incredibly weak from a historical perspective. In fact, home sales in June were 21% below the ten year average. Meanwhile, new listings have bounced back as well, increasing 38% month-over-month and near normal levels for June. However, all in all, inventory levels remain low and that has kept prices firm.

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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