The Market Watch #02

BANK OF CANADA UPDATE
Bank of Canada keeps it Policy Rate at 5%

Holding the Rate at 5% was expected by most economists … including me 🤣.

HOME PRICE INDEX
If nothing else, the Home Price Index show pricing trends based on historical Data.

The graph clearly show:

• Compared to last year this time prices are up 1.6% to 2.4%

• Last year this time prices experienced a steady increase towards the middle of the year. All things equal, we could expect the same this year.

• The graph shows Detached Single Family Homes, Townhomes and Condos lumped together. When separated the trends are similar but the percentages are vastly different. Feel free to reach out if this is of interest

SALES TO ACTIVE LISTINGS RATIO
Historically this Ratio is seen by analysts as a good indicator of where prices are heading.

If the Ratio is between 12%-20% for extended periods the Market is said to be in a Balanced state where the demand is unlikely to push prices up or push prices down.

If the Ratio is below 12% we are in a Buyers Market because the Demand is less than the Supply. Buyers hold the upper hand and sellers can experience some heavy negotiation from the buyers.

If the Ratio is above 20% we are in a Sellers Market where supply is less than the demand. Sellers hold the upper hand and with multiple offers on hand sellers are more likely to get a better price.

Last year this time the Ratio was absolutely Crazy!

Burnaby was in the “stratosphere” at just under 50% meaning buyers were far outstripping the supply of homes. This year:

• We are also in a Sellers Market with the Ratios sitting around 20% and 26%. Again when we breakout into Single Family, Townhome and Condo the percentages differ but the trends are similar.

• There is definitely an upward trend so we can expect to see a lot of activity.

Was it JFK who said “A rising tide lifts all boats”

It’s definitely the case in real estate. If we are selling at a high price, we should also expect to buy at a high price. There are always “anomalies” so whether we are buying or selling the best time is “when you are ready”

METRO VANCOUVER RENT
How much Rent are we Paying

The shortage of homes has definitely played havoc in the Rental Market. A 1-Bedroom Condo in Richmond rents for $2,400 and a 3-Bed for $4,000!

Without the help of the Bank of Mom and Pop it is so difficult to enter the housing market and with rents where they are, without a frugal mindset survival could be difficult for many.

A recent Calgary Herald headline read:

'Calgary is Canada’s current housing hot spot' as prices and rents rise — and employers grow worried

If workers find difficulty surviving then moving out of Metro Vancouver must look like an option.

FOODIE CENTRAL
Richmond Center Foodcourt.

The Richmond Centre food court is definitely one of my Favourites. There is a nice mix of vendors catering to variety of tastebuds

Cooking style caters mainly to a “Western” palette - stay tuned as we will also look at reviews of more exotic cuisines.

The Foodcourt is spacious and the overall feeling is relaxed and enjoyable.

In case you are wondering, here is a summary of the Google Reviews. For simplicity, I have rounded up/down to the nearest Star

The Center has a great maintenance team that keeps the dining area and washrooms meticulously clean. This is a definitely plus for the food court👍

SOME FINAL THOUGHTS
What do you think?

Do you have an idea on category we should add. Look forward to your feedback.

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