The Saretsky Report. December 2020

Steve Saretsky -

As I illustrated in last months report, I continue to shift away from the idea of pent-up demand and pivot towards the view of a new bull market. I don’t know how long it will last, but the data is simply too difficult to ignore. Following the trend, December recorded new record highs for home sales across Greater Vancouver. Home sales surpassed the 2015 bull market, and were up a whopping 54% on a year-overyear basis. Months of inventory for sale trickled lower, coming in at a mere 2.6 months of supply- the lowest reading since June 2017. These supply constraints are largely concentrated in the single family housing market, and is putting immense upwards pressure on prices, officially up 10% on the year as measured by the hedonically adjusted MLS benchmark price.

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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