The Saretsky Report for September 2018 available here:
The Vancouver real estate market is going through a psychological shift. Buyers are becoming more hesitant to pull the trigger in a belief that prices will drop in the months ahead. And those thoughts are certainly justified.
Vancouver detached sales once again trickled in at a 27 year low for the month. There is now 15 months of inventory for sale in the detached space. This has now spread to the condo market where sales fell 42% and inventory jumped 73%. Inventory is still low historically but it is climbing rather quickly. Further, there will be a record 2200 pre sale units released in October, a record high for the month.
From a Canadian economic perspective, the housing slowdown is now hitting the auto market, where car sales dropped 7%, the largest Y/Y decline since 2009. The Bank of Canada seems slated to raise rates again in October, while the 5 year Government bond hit a 7 year high this week.