- The Bank of Canada met market expectations, raising its key monetary policy interest rate by 25 basis points, to 0.75%.
- The June jobs number from Statistics Canada was the last significant economic detail to be delivered before the Bank of Canada’s interest rate announcement today. The creation of more than 45,000 new jobs was far better than forecast and continues a trend that started about a year ago. It all but guarantees there will be an increase in the central bank’s trendsetting rate. As expected, the overnight rate increased by 0.25% to 0.75%.
REBGV June 2017 Market Update Video
Click on the image above to view our June 2017 market update video featuring Board President Jill Oudil.
Demand for condo continues to outstrip supply with a sales-to-active ratio at 93%. Detached home market has returned to Seller’s market with sales-to-active ratio at 25%.
Overall, the sales-to-active ratio has decreased over the last month but the ratio remained above 12% so we will probably not see any price reduction.
The graph below shows the average sales-to-active ratio for all property types in All of Greater Vancouver (REBGV), Richmond, Vancouver and Burnaby.
What I’ve learned from last year was that although the sales-to-active ratio had declined, the sales price did not as long as it remained above around 12%. For single family houses, the price started to drop when the ratio dipped to 13% in August 2016 before it bounced up in February 2017.
In Toronto, home sales collapsed by more than 37% in June as compared to same month last year. New listings shot up by nearly 16% but prices still increased by an average of 6.3%.