With year-over-year sales rising in both July and August, and arguably the best economic fundamentals in all of Canada, Ryan Berlin says signs are pointing to a rebounding housing market in Greater Vancouver.
It’s been a fascinating couple of months for real estate market watchers in the Vancouver region, as the increase in demand that we saw at the beginning of the summer holidays continued through to their end: sales first rose by 19% on a year-over-year basis in July, then again by 15% in August (again, compared to last year). These were the region’s first year-over-year increases in 18 months.
Additionally, economic conditions have evolved over the past year to position Greater Vancouver as a sort of oasis in a world of growing uncertainty: employment is growing at 6.5% annually (second-fastest among metros in Canada); the unemployment rate is at its theoretical floor (4.0%); and median weekly wages are up by 6.0%–three times the national average.
With the market having now fully adjusted to the slew of demand-suppressing policies introduced last year, continued strong demographic and economic growth have together set the stage for a change in market trajectory.
This notion is further buttressed by the likely September re-emergence of would-be buyers from their collective summer hiatus. In light of these factors, we’ll be keeping a keen eye on the evolution of the region’s housing market through the balance of this month with a view to projecting how 2019 is likely to play out for buyers and sellers throughout the region. For now, and from this vantage point, things are looking up.
Ryan Berlin is the Senior Economist with rennie intelligence
A triple shot of Ryan Berlin and Rick Cluff: