REBGV Stats
The month-over-month price gains seen earlier this year abated in the Metro Vancouver housing market in September due to a seasonal decline in sales and a modest increase in inventory levels across the region. The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,926 in September 2023, a 13.2 per cent increase from the 1,701 sales recorded in September 2022. This was 26.3 per cent below the 10-year seasonal average (2,614). “A key dynamic that we’ve been watching this year has been the reluctance of some homeowners to list their homes given that mortgage rates are the highest they’ve been in over ten years,” Andrew Lis, REBGV’s director of economics and data analytics said. “With fewer listings coming to the market earlier this year than usual, inventory levels remained very low, which led prices to increase throughout the spring and summer months.” There were 5,446 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2023. This represents a 28.4 per cent increase compared to the 4,243 homes listed in September 2022. This was 5.2 per cent above the 10-year seasonal average (5,179). The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,382, a 9.2 per cent increase compared to September 2022 (10,427). This was 6.2 per cent below the 10-year seasonal average (12,136). Across all detached, attached and apartment property types, the sales-to-active listings ratio for September 2023 is 17.7 per cent. By property type, the ratio is 12.6 per cent for detached homes, 21.6 per cent for townhomes, and 21.3 per cent for apartments. Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months. “In contrast to the spring and summer, the September data suggests there may be a renewed interest on the part of sellers to participate in the market, with new listing activity rising back in line with long-term historical averages. This upward shift in new listings has allowed overall inventory levels to recover modestly from the low levels we saw earlier this year,” Lis said. “When we pair this dynamic with the slowdown in sales that typically occurs in the fall as a result of seasonal patterns, the outcome is more balanced market conditions overall.” The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,203,300. This represents a 4.4 per cent increase over September 2022 and a 0.4 per cent decrease compared to August 2023. Sales of detached homes in September 2023 reached 572, a 7.5 per cent increase from the 532 detached sales recorded in September 2022. The benchmark price for a detached home is $2,017,100. This represents a 5.8 per cent increase from September 2022 and a 0.1 per cent decrease compared to August 2023. Sales of apartment homes reached 988 in September 2023, an 11.3 per cent increase compared to the 888 sales in September 2022. The benchmark price of an apartment home is $768,500. This represents a 5.8 per cent increase from September 2022 and a 0.2 per cent decrease compared to August 2023. Attached home sales in September 2023 totalled 352, a 28.5 per cent increase compared to the 274 sales in September 2022. The benchmark price of an attached home is $1,098,400. This represents a 5.3 per cent increase from September 2022 and a 0.5 per cent decrease compared to August 2023. Real Estate Board of Greater Vancouver
Market Brief
While many students put aside some extra savings into their Tax-Free Savings Account, Jamie Golombek says they might want to consider saving in a First Home Savings Account (FHSA). Golombek, Managing Director of Tax and Estate Planning at CIBC Private Wealth, believes the FHSA could be a strong choice for students saving money due to its vast tax benefits and emphasis on saving for a home purchase. The FHSA started on April 1, 2023, to help those looking to purchase a home for the first time. The program allows annual contributions of $8,000 and a lifetime maximum of $40,000. Unused contribution room can be carried over to future years. To be eligible for the account, a holder must be a Canadian resident and 18 years of age or older. Saving in an FHSA carries many tax benefits. Contributions to the account are tax-deductible, and all contributions and investment income earned in the account can be withdrawn tax-free to purchase a home. Golombek noted that students can use the tax benefit in future years, presumably when they are in a higher tax bracket. With any savings plan, the earlier one starts, the more potential for growth over a longer period, making it a valuable savings tool for students. The FHSA is not only suitable for students as it could be a valuable account for any age. If you want to purchase a home for the first time, this could be the account to help you save and meet that financial goal regardless of age. This new product in the Canadian market has plenty of appeal, particularly as home prices have skyrocketed over the last few years. If you are looking to purchase a home for the first time, it is encouraged to start planning early and put together a savings and investment plan to help you meet that goal. An FHSA can be a valuable tool to help you get there. This is a CIBC Market Brief
Canadian businesses concerned about inflation
Canadian businesses concerned about inflation Statistics Canada’s latest survey on business conditions carried out in July and August revealed a decline in business optimism from the previous quarter’s survey. Inflation worries persist among more than half of businesses surveyed. Nearly 20% of businesses faced challenges sourcing inputs and keeping up inventory. Rising inflation was mentioned by 57% of businesses as a likely significant obstacle in the next three months. This sentiment was most pronounced in the accommodation and food services and the health care segments. One-third of businesses anticipated a decrease in profitability, and slightly over one-quarter anticipated the need to increase the prices they charge. Despite inflation dipping to 2.8% in June and aligning closer with the Bank of Canada’s target range of 1%–3%, it lifted to 3.3% in July. Approximately one-quarter of businesses planned to raise prices over the next three months, a slight decrease from the previous survey’s figure of 28.3%. Optimism among businesses dropped compared to the previous quarter’s survey, as 66.3% of businesses expressed being either very optimistic or somewhat optimistic about the upcoming 12 months, a decline from the preceding quarter’s figure of 73.5%. In the business world, looking ahead and anticipating challenges can make a significant difference to a company’s balance sheet and costs. As the new school year approaches, anticipating expenses with a carefully considered budget can make all the difference in efficiently allocating your own resources. This can be especially useful when budgeting for something special. CIBC Market Brief
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