Look like the February market was still looking for a bottom. Benchmark prices have dropped year over year and month over month. The new listing has been slowing down, maybe indicating that the sellers are taking a rest. But the inventory continues to grow as sales are not keeping pace.
Benchmark price for detached homes have dropped 9.7% over the last year. The benchmark price of condos dropped 4%, while it dropped 3.3% for attached homes over the last 12 months.
New listings had a 7.8% decrease over last month and a 19.7% decrease compared to last year. However, the total number of homes currently listed in the MLS system in Metro Vancouver is 48.2% higher than last February
Sales to listing ratios are 8.5% for detached homes, 15% for townhomes and 17% for condominiums. Even though, they say sustained values of 12% or lower will have downward pressure in price, we know for the last few months that this is not always the case. The SLR for condos have not dropped below 12% once, but the prices have already dropped. On a positive note, these numbers are better than last month’s.
The Bank of Canada held the overnight rate steady last week like most predicted. Global economy has been slowing and major central banks have indicated that they will be on the sidelines for now. The financial markets are betting that the Bank of Canada will not raise rate this year.
The Economist recently published an article pointing out that luxury properties have been dropping in prices across the globe. So besides what is going on in Canada, there is a global trend here at play. Once again it is tied to the tail end of the US economic cycle, uncertainty in the US-China trade and EU uncertainties over Brexit.
Factors at play in the Canadian economy includes the weak real estate market, the lower oil prices and US tariffs on our steel and aluminum exports. The recent mortgage rule changes and the various new taxes have contributed to keeping the real estate market slow. However, with the federal election coming up, politicians are playing politics. They are throwing around the idea of loosening the mortgage restrictions. That might give the market a temporary boost.
