- the source for market opinions


May 10, 2022 | The Saretsky Report – May 2022

Steve Saretsky

Steve Saretsky is a Vancouver residential Realtor and author behind one of Vancouver’s most popular real estate blogs, Vancity Condo Guide. Steve is widely considered a thought leader in the industry with regular appearances on BNN, CBC, CKNW, CTV and as a contributor to BC Business Magazine. Steve provides advisory services to banks, hedge funds, developers, and various types of investors.

Last month we discussed the beginnings of a slowdown, and that theme continues this month. For the first time since 2010, the lowest nationally-available uninsured 5-year fixed rate mortgage is now north of 4%. This means that any buyer opting to make a purchase using a 5 year fixed rate will be stress tested at a minimum of 6.25%. Now add record home prices and wage growth that has failed to keep pace with the rising cost of living and you can see that something has to give. The highly levered Vancouver housing market is going to struggle with mortgage rates north of 4%. Need I remind you that in 2018, when mortgage rates were hovering around 3.5%, Greater Vancouver home sales slumped to an eighteen year low. Thus there should be no surprise that sales activity has fallen precipitously since the end of February, and April home sales fell 34% year-over-year. Prices need to adjust for the higher cost of borrowing. There are now signs that process is underway, which we’ll discuss later in the report.

Download (PDF, 16.54MB)

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

May 10th, 2022

Posted In: The Saretsky Report

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.