Hope you had a wonderful BC Day long weekend. The Vancouver real estate market continues to slow as the Bank of Canada raised their overnight rate again in July. In response, the yield on the bonds continued to climb which moved mortgage rates higher. This will continue to put a damper on demand.
Sales in July was 15.6% below the 10-year average. The sales-to-active listings ratios dropped in all categories and as you can see from the table below, these ratios peaked in May. These are indicators of demand and supply. When it is above 20%, there is upward pressure on the price, but the trend of the ratios is equally important. As you can see when the sales-to-active listings are dropping, the price increases are smaller. It is not a perfect correlation as there are lags between changes in supply and demand and the negotiated prices of the sale.
The Canadian Real Estate Association revised their sales forecast lower for the remainder of the year. As an organization that is usually a cheerleader for the industry, this is worth taking note. I expect August to continue to slow.
Enjoy the rest of the month.
