Market shifting in buyers’ favour, though hesitation remains

VANCOUVER, BC – July 3, 2024 – Metro Vancouver home sales registered on the MLS® remained below seasonal and historical averages in June. With reduced competition among buyers, inventory has continued to accumulate to levels not seen since the spring of 2019. The Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,418 in June 2024, a 19.1 per cent decrease from the 2,988 sales recorded in June 2023. This was 23.6 per cent below the 10-year seasonal average (3,166).

“The June data continued a trend we’ve been watching where buyers appear hesitant to transact in volumes we consider typical for this time of year, while sellers remain keen to bring their…

385 Views, 0 Comments

Read Full Post

Fraser Valley home sales fall despite Bank of Canada rate cut


SURREY, BC – The policy rate cut of 25 basis points by the Bank of Canada on June 5 was not enough to rally home sales in the Fraser Valley last month.

The Fraser Valley Real Estate Board recorded 1,317 sales in June, down by 13 per cent over last month and by more than 30 per cent over both last year and the 10-year seasonal average.

While sales remain soft, inventory continued to build for the sixth straight month to 8,350 active listings. Active listings increased 41 per cent over June 2023 and are the highest they’ve been in five years.

“With seasonally slow sales in June and a steady increase in inventory, we’d expect to see affordability improve,” said Jeff Chadha, Chair…

343 Views, 0 Comments

Read Full Post

Canadian prices, as measured by the Consumer Price Index (CPI), rose 2.9 per cent on a year-over-year basis in May, up from a 2.7 per cent increase in April. Month-over-month, on a seasonally adjusted basis, CPI rose by 0.3 per cent in May. The acceleration in headline CPI was driven by rising prices for services, especially cellular, travel, rents, and air transport. The shelter cost index remains the major driver of inflation with the rate of increases higher now (6.4 per cent) than they were this time last year (4.7 per cent). Mortgage interest costs were up 23.3 per cent and rent was up 8.6 per cent from the same time last year in May. Excluding shelter, consumer prices rose just 1.5 per cent, year over year. In BC, consumer prices rose 2.9 per cent…

339 Views, 0 Comments

Read Full Post

Inflation unexpectedly rose in May, disappointing the Bank of Canada as it deliberates the possibility of another rate cut next month.

The Consumer Price Index (CPI) rose 2.9% in May from a year ago, up from a 2.7% reading in April. This increase primarily reflects higher prices for services and, to a lesser extent, food. According to a Bloomberg survey, economists had expected 2.6% inflation last month.

Cellular services, travel tours, rent, and air transportation boosted service prices by 4.6% year-over-year (y/y) in May, up sharply from the 4.2% rise in April. Price growth for goods remained at 1%, although grocery prices rose more rapidly.

Monthly, the CPI index climbed 0.6% compared to expectations for a 0.3% gain and up from 0.5% in April.…

271 Views, 0 Comments

Read Full Post

The Canadian Real Estate Association (CREA) announced today that national home sales fell 0.6% in May, remaining slightly below the average of the past ten years. Actual (not seasonally adjusted) monthly activity was 5.9% below May 2023.

With the Bank of Canada rate cut on June 5, housing activity will likely perk up in the coming months. The central bank will likely reduce the overnight policy rate from 4.75% to 3.0% by the end of next year. While interest rates will remain above pre-pandemic levels, there is pent-up demand for housing, and activity will surely rise over the next year.

New Listings

The number of newly listed homes was up in May, though only by 0.5% monthly. Slower sales amid more new listings this year have increased the…

344 Views, 0 Comments

Read Full Post

Vancouver, BC – June 13, 2024.  The British Columbia Real Estate Association (BCREA) reports that 8,075 residential unit sales were recorded in Multiple Listing Service® (MLS®) systems in May 2024, an 11.6 per cent decrease from May 2023. The average MLS® residential price in BC in May 2024 was down 1.5 per cent at $1 million, compared to an average price of $1.02 million in May 2023. The total sales dollar volume was $8.1 billion, a 13 per cent decline from the same time the previous year.

"Markets could not match the surge in home sales that occurred this time last year," said BCREA Chief Economist Brendon Ogmundson. "However, we are starting to see a pick-up in sales activity to more normal levels, which, combined with rising inventory, is…

221 Views, 0 Comments

Read Full Post

The Bank of Canada lowered its overnight lending rate this morning by 25 basis points from 5 per cent to 4.75 per cent. In the statement accompanying the decision, the Bank noted that first quarter real GDP growth was below forecast, and recent data suggests the economy in operating in excess supply.

On inflation, the Bank sees downward momentum in core inflation, while noting that shelter inflation remains high. Overall, the Bank is confident that inflation will continue to move toward its 2 per cent target and that monetary policy no longer needs to be as restrictive. This Bank of Canada rate-lowering cycle will be one of the few times this century that rates are being cut for reasons other than in response to a global crisis.

As such, we should…

1170 Views, 0 Comments

Read Full Post

Spring inventory continues to build in the Fraser Valley to levels not seen in nearly five years

SURREY, BC – Slower seasonal sales helped build inventory to its highest level since September 2019 in the Fraser Valley in May, creating more balanced market conditions for home buyers and sellers. The increase in supply over the past several months has further contributed to a softening of price growth, which is good news for buyers.

Active listings increased eight per cent from April to May to 7,904 — up 42 per cent over May 2023 and 19 per cent above the 10-year average.

Sales, however, remained seasonally slow, with 1,517 transactions on the Fraser Valley Real Estate Board’s Multiple Listings Service ® (MLS®) in May, up 3 per cent from April, but…

596 Views, 0 Comments

Read Full Post

Metro Vancouver home sales down in May while inventory continues to increase.

VANCOUVER, BC – June 4, 2024 – The number of transactions on the Multiple Listing Service® (MLS®) declined in May compared to what is typical for this time of year in Metro Vancouver. This shift has allowed the inventory of homes available for sale to continue to accumulate with over 13,000 homes now actively listed on the MLS® in the region.

The Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,733 in May 2024, a 19.9 per cent decrease from the 3,411 sales recorded in May 2023. Last month’s sales total was also down 19.6 per cent from the 10-year seasonal average for May (3,398).

“The surprise in the May data is that sales have…

570 Views, 0 Comments

Read Full Post

Canadian real GDP was essentially unchanged in March, following a 0.2 per cent increase in February. Both goods and services sectors were unchanged from February. Residential construction activity rose by 1.4 per cent driven by increased construction of single-detached homes, while the broader construction sector also rose (+1.1 per cent). GDP from offices of real estate agents and brokers fell 0.9 per cent last month as home sales cooled somewhat. Preliminary estimates suggest that output in the Canadian economy rose by 0.3 per cent in April.

Real GDP rose 1.7 per cent in the first quarter on an annualized basis, following no growth in the fourth quarter of 2023 (revised down from 0.2 per cent). Household spending on services, such as telecom, rents,…

304 Views, 0 Comments

Read Full Post