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Steve Saretsky

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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.

September 26th, 2022 | Getting Aligned

Steve Saretsky Blog - Another massive week in the rates market with the US Federal Reserve jacking rates up another 75bps. While this was expected, it was the stark comments from Jerome Powell that really shook markets. Powell basically, in a polite way, said Americans need to endure some economic pain, including job loss, to slow demand and get […]

September 19th, 2022 | Bringing Down The House

Steve Saretsky Blog - Higher interest rates continue to slow the nations housing market. National home sales, as reported by CREA, fell 25% year-over-year in the month of August. It was also the sixth consecutive monthly decline in home sales. While new listings remain weak as sellers resist selling at recent valuations, inventory is still climbing and prices continue […]

Steve Saretsky Blog - As expected, the Bank of Canada raised interest rates another 75bps this past week. The overnight rate is now up a whopping 300bps year to date, the quickest tightening of monetary policy on a percentage basis since the 1980’s. While there was no additional commentary from BoC Governor Tiff Macklem, the official press release notes, […]

The Saretsky Report - There’s always lots to talk about in the Vancouver housing market, especially these days. We have plenty of updates this month on interest rates, trigger rates, and the investor/ rental market. Housing activity remains on the same course it’s been on over the past few months. Greater Vancouver home sales dropped 40% y/y in August. […]

Steve Saretsky Blog - Canada’s second quarter GDP came in at 3.3% annualized rate, below economists forecasts of 4.4% and below the Bank of Canada’s own estimate of 4%. While weaker than expected, that won’t prevent the Bank of Canada from delivering a super sized rate hike this week on September 07th. Markets are still pricing in a 75bps […]

August 29th, 2022 | Floating Rates

Steve Saretsky Blog - Canadian banks reported quarterly earnings this past week. One thing was clear, loan loss provisions are increasing, albeit from very low levels. Banks are preparing for more turbulence ahead, as highlighted by comments from Canada’s largest bank, RBC. The bank says interest rate hikes may trigger higher monthly payments for 80,000 customers with variable rate mortgages. […]

August 23rd, 2022 | Housing and Soft Landings

Steve Saretsky Blog - Inflation has likely peaked from a rate of change perspective, dropping to 7.6% year-over-year in July, down from 8.1% in June. However, we are far from out of the woods. What’s interesting here are the comments from Bank of Canada Governor, Tiff Macklem, immediately following the release. It’s not often you see the Bank of […]

August 16th, 2022 | No Renewal For You

Steve Saretsky Blog - Desjardins is joining a growing chorus of housing bears, calling for further price declines in the nations housing market this year. The bank is now calling for a 25% drop from peak to trough in the average sales price nationally. Keep in mind the average sales price is skewed predominantly by the GTA, and a change […]

The Saretsky Report - Continuing on the theme from last month, housing activity continues to slow as expected when the Bank of Canada raised interest rates by 100bps last month and instantly reduced borrowers purchasing power. Remember, over 50% of new mortgage applicants this year have been going with variable rate mortgages, in large part to dodge the pain […]

August 8th, 2022 | No New Couches

Steve Saretsky Blog - As discussed last week, our early indicators pointed to Greater Vancouver home sales falling to a 22 year low in home sales for July. The Real Estate board has officially confirmed the precipitous decline. July sales were also 35% below the ten year average, and the typical price of a home is now down 4.5% […]

August 3rd, 2022 | Bond Yields are Responding

Steve Saretsky Blog - The worlds most important central bank, the US Federal Reserve, raised rates another 75bps this past week. The following day, second quarter GDP contracted 0.9%, marking the second straight quarter of contracting economic growth. While policy makers are not officially calling it a recession, we are arguably in one already. As highlighted by the always […]

Steve Saretsky Blog - Another month, another record inflation print. Canada’s CPI inflation printed 8.1%, the highest level since January 1983. The silver lining is this was actually lower than market expectations of 8.4%, sending bond yields lower on the premise that inflation is likely peaking and a recession is becoming nearly inevitable if we aren’t in one already. […]

The Saretsky Report - I’m a bit later than usual in writing this report and it’s probably for the best. As of this writing on July 13th, the Bank of Canada raised interest rates a monstrous 100bps, the single largest increase since 1998. This will have significant ramifications for the housing market, not just psychologically but financially.

July 18th, 2022 | Front Loading

Steve Saretsky Blog - Another month, another jumbo sized rate hike from the Bank of Canada. Tiff Macklem and crew surprised markets with a 100bps rate hike, the largest move since 1998 when the central bank was trying to support a weak Loonie. It was just two years ago when the Bank of Canada was rather irresponsible in encouraging […]

July 4th, 2022 | Flushed Down the Toilet

Steve Saretsky Blog - As per Stats Canada, activity at the offices of real estate agents and brokers dropped 15.0% in April, the largest contraction since April 2020. That was in April, so you can only imagine how the data will look in the coming months. Recent sales figures in Canada’s two largest major metros suggest this bear market […]

June 27th, 2022 | Cash for Renters

Steve Saretsky Blog - Another month, another record inflation print here in the Great White North. Headline inflation in Canada ticked up to 7.7% year-over-year in May, a 39 year high. Shelter, which is the largest component of the CPI basket also moved higher, up 7.4% from last year. Of course if you’re relocating in the rental market or […]

Steve Saretsky Blog - Over the past several weeks regular readers of this newsletter have heard me rant about the impending slowdown in the development space. A combo of rising financing costs and still elevated construction costs makes for a rather terrible risk/reward ratio for home builders. In fact, it makes some projects economically unfeasible. Mainstream media is now […]

The Saretsky Report - As has been the theme for the past few reports, inflation and interest rates remain front and center. Inflation remains stubbornly high and central banks are panicking to reign it in. They are now tasked with the impossible mission of killing enough demand to bring commodity prices (energy) down, without triggering a financial mistake and […]

June 13th, 2022 | The Great Moderation

Steve Saretsky Blog - Another week, another bump higher in borrowing costs. The Canada 5 year bond yield ripped again, climbing above 3.3%, the highest reading since March 2008. Last time rates were this high bad things happened. As has been the theme of this newsletter for the past month or so, I continue to believe this is a […]

June 6th, 2022 | Soft Landings

Steve Saretsky Blog - The Bank of Canada raised interest rates another 50bps this past week, signalling more pain to come. The overnight rate sits at 150bps, just shy of where the Bank of Canada got stopped out in 2019. Markets are still pricing in another 150bps of additional tightening this year, which suggests the overnight rate will sit […]

May 31st, 2022 | Appraisers are Skittish

Steve Saretsky Blog - More monetary tightening is heading our way this week with the Bank of Canada fully expected to hike interest rates another 50bps on Wednesday. Assuming they do indeed hike rates by 50bps on Wednesday, Markets are still pricing in another 125bps of tightening by the end of the year. Of course, much of this depends […]

May 16th, 2022 | The Rout is On

Steve Saretsky Blog - It was another volatile week for financial markets. Nearly $11 trillion was erased from global equity values. If you start adding the bond and crypto markets we have $35 trillion in wealth that has evaporated. I’m often asked where is all the money coming from? How are people coming up with the down payments for […]

The Saretsky Report - 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 […]

May 9th, 2022 | Payment Shock for Some

Steve Saretsky Blog - We need higher rates to moderate demand, including demand in the housing market. Housing price growth is unsustainably strong in Canada. That was the message from senior deputy governor of the Bank of Canada, Carolyn Rogers this past week. Yes, the central banks continues to talk up further rate hikes, with the goal of slowing […]

Steve Saretsky Blog - No regrets. That was the message from Bank of Canada governor Tiff Macklem when asked about his broken promise on holding rates at zero until the end of 2023. If you recall, in July 2020 Macklem gave the green light for Canadians to speculate on housing, announcing “If you’ve got a mortgage, or if you’re […]
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