Forget Pent-Up Demand, Let’s Talk About Pent-Up Housing Supply

[CREA Cafe - April 21, 2021] On Thursday, April 15, the Canadian Real Estate Association (CREA) released its national housing statistics for the month of March. Below, CREA’s Senior Economist Shaun Cathcart provides an update on the current state of housing markets in Canada and explains what the data means for members. As everyone already knows, home sales have been setting major records since last summer. In previous posts I’ve said the market wouldn't be able to keep that up at [...]

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Bank of Canada keeps benchmark rate at record low but economic outlook brightens

Bank forecasting a 6.5% increase in GDP growth in 2021, up from 4% [CBC - April 21, 2021] The Bank of Canada opted to keep its benchmark interest rate steady at a record-low 0.25 per cent Wednesday, saying the pandemic recovery "continues to require extraordinary monetary policy support." At the same time, it significantly increased its growth estimates, forecasting a 6.5 per cent increase this year, up from an earlier prediction of four per cent. The bank said in a statement that it intends to [...]

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Vancouver’s red-hot housing market starting to cool Sales ‘ froth’ coming off as higher supply begins to meet buyer demand across Greater Vancouver, early April data shows

[Western Investor - April 21, 2021] After soaring 128 per cent in March to set an all-time sales record, Greater Vancouver’s red-hot housing market is starting to cool down, early April data shows As of April 15, home sales were down fractionally from the same period a month earlier, with 2,402 transactions compared to 2,663 sold as of mid-March, according to early data from the Greater Vancouver Real Estate Board, but the number of active listings increased to 10,301, up from 9,467 at [...]

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Home buyer demand remains elevated across Metro Vancouver

[CREA  + REBGV - February 2021] In the first month of 2021, Metro Vancouver’s* housing market continued the pattern set at the end of last year with home sale activity outpacing the supply of homes listed for sale. The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,389 in January 2021, a 52.1 per cent increase from the 1,571 sales recorded in January 2020, and a 22.8 per cent decrease from the 3,093 homes sold in December 2020. Last month’s sales were 36.4 per cent above the 10-year January sales average. "With home sale activity well above our January average, the supply [...]

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B.C. to extend rent freeze to end of 2021, increase protections against ‘renovictions’

[CBC - March 1, 2021] NDP government says it's meeting recommendations from a 2018 task force on rental issues The British Columbia government says it will introduce legislative changes to extend a rent freeze through to the end of this year to stop illegal "renovictions" and improve the dispute resolution process for tenants and landlords. The province has already introduced and extended a rent freeze during the COVID-19 pandemic, and it says in a news release Monday that new legislative changes will keep it in [...]

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Vancouver real estate: home across Trout Lake listed $1.7 million, sells $870,000 over asking for $2.6 million

[Georgia Straight - February 28, 2021] The Straight has previously reported about homes selling over $500,000 on top of their listed price. If some thought nothing is ever going to beat that, here’s a surprise. A home in East Vancouver recently sold $872,134 over its original asking price. The top-up alone is enough to buy a townhouse or perhaps two condos. The two-storey home at 3285 Victoria Drive sold on February 24 after eight days on the market. Oakwyn Realty Ltd. listed the five-bedroom, four-bath [...]

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TD becomes first major bank to hike fixed five-year mortgage rates amid surge in bond yields

[Globe and Mail - February 26, 2021] Bay Street expected higher interest rates – but not this high, this fast. And we’re now starting to see the impact on those shopping for mortgages. Canada’s five-year government bond yield, which leads fixed mortgage rates, surged past 1 per cent on Friday morning, its highest since before the Bank of Canada cut rates last March. That’s a 50-basis-point move in nine trading days, the likes of which we haven’t seen since 2010. (There [...]

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Time to complete your speculation and vacancy tax declaration

[Real Estate Board of Greater Vancouver - February 22, 2021] Residential property owners in communities where the speculation and vacancy tax (SVT) applies will soon receive their declaration package and can complete it online at: https://gov.bc.ca/spectax All owners on the title, including spouses and relatives, must complete a declaration to claim an exemption or determine eligibility for a tax credit. Corporations must also complete a declaration for all residential properties in taxable regions. The deadline to complete a declaration is March 31. Property owners needing help can: phone 833-554-2323 (toll-free in Canada and [...]

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Despite the botched vaccine rollout, the Canadian economy is on the ‘cusp of a boom’

[Financial Post - February 17, 2021] The U.S. will be awash in stimulus dollars soon — and Canada must catch that wave The word ‘boom’ is starting to show up in analysts reports. While Canada has botched the vaccine rollout at least in the short-term, pundits believe the blip will soon be in the rearview mirror if more paralyzing delays are few and far between in the near future. The good news is that the Pfizer-BioTech joint venture will deliver more than 878,000 [...]

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Why detached home prices in Greater Vancouver have been rising, while condo prices have stayed static

[CBC - February 3, 2021] Single-family home prices increasing at level not seen since mid-2010s COVID-19 doesn't affect all people equally — and it doesn't affect the housing market equally either. The average selling price of a detached home in Greater Vancouver rose for the sixth straight month in January, the first time that had happened since 2013. At $1.83 million it's the third highest monthly figure in the history of the Greater Vancouver Real Estate Board. To the east, the Fraser Valley [...]

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