The Saretsky Report. August 2020

Steve Saretsky -

Some people are calling it the COVID housing boom, others, like Zillow Founder Rich Barton, are calling it the Great Reshuffling. Amidst what was expected to be a disastrous year for the housing market across North America, Zillow slashed costs by 25%, bracing for the worst ahead. Instead, second quarter revenues at Zillow soared 28%, far surpassing any expectations. The explanation, Barton says, is the nationwide trend toward remote work brought on by social distancing concerns. Seventy percent of Americans report working from home at least some of the time, and all Americans are spending an average nine hours more at home per day than they did before, Barton says. And that means people have new priorities in where they want to live. A big backyard and room for a home office is more important these days than a short commute or proximity to a bustling downtown. I share this because this is the exact same story here in Vancouver. People’s lives have fundamentally changed since COVID, prompting a surge in not only home sales, but new listings as well.

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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