For the complete news release, including detailed statistics, click here.

Vancouver, BC – September, 2022. The British Columbia Real Estate Association (BCREA) reports that a total of 5,645 residential unit sales were recorded by the Multiple Listing Service^® (MLS^®) in August 2022, a decrease of 40.8 per cent from August 2021. The average MLS^® residential price in BC was $918,378, a 2.1 per cent increase from $899,428 recorded in August 2021. Total sales dollar volume was $5.2 billion, a 39.6 per cent decline from the same time last year. 

“Housing activity across the province remains well below normal but is showing signs of stabilizing,” said BCREA Chief Economist Brendon Ogmundson. “While inventory is up over last year, active listings have somewhat stalled at relatively low levels in most major markets and as a result we are seeing a healthier balance compared to last year.”

Year-to-date, BC residential sales dollar volume was down 22.1 per cent from the same period in 2021 to $63.8 billion. Residential unit sales were down 30.5 per cent to 62,502 units, while the average MLS^® residential price was up 12 per cent to $1.02 million.

For more information, please contact: Gino Pezzani.

Canadian employment declined by 40,000 (-0.2 per cent) to 19.527 million in August, falling for the third consecutive month. The Canadian unemployment rate also jumped by 0.5 to 5.4 per cent, rising from the lowest rate on record in the prior two months and up for the first time in seven months. Average hourly wages were up 5.4 per cent year-over-year, increasing from 5.2 per cent in June and July. Wage gains remain below the inflation rate, however, which hit 7.6 per cent year-over-year in the most-recent data. Total hours worked were unchanged in August, but are up 3.7 per cent year-over-year.

Employment in BC declined by 28.1k to 2.719 million in August, while Metro Vancouver's employment fell by 2.1k month over month. The unemployment rate rose in August to 4.8 per cent. Among the provinces, only Quebec currently has a lower unemployment rate. 

Link: https://mailchi.mp/bcrea/canadian-employment-august-2022

For more information, please contact: Gino Pezzani.

BCREA 2022 Third Quarter Housing Forecast Update

To view the BCREA Housing Forecast Update PDF, click here.

Vancouver, BC – September, 2022. The British Columbia Real Estate Association (BCREA) released its 2022 Third Quarter Housing Forecast Update today.

Multiple Listing Service^® (MLS^®) residential sales in BC are forecast to decline 34.4 per cent from a record high 2021 to 81,900 units this year. In 2023, MLS^® residential sales are forecast to fall an additional 5 per cent to 77,790 units.

“Mortgage rates have risen at a much faster rate and to a higher level than previously anticipated,” said BCREA Chief Economist Brendon Ogmundson. “Faced with a dramatic shift in the cost of borrowing, housing market activity is likely to fall well below normal over the next year.”

Weaker sales and rising inventory mean that some regions, largely in more expensive markets, have tipped into buyers’ market territory. Consequently, average MLS^® home prices have come down from peak levels.

While the housing market is currently feeling the weight of higher interest rates, the downturn is unlikely to be long-lived as BC’s strong population growth combined with extremely favourable demographics means there will be no shortage of demand for housing in the province.  

For the complete news release, including detailed statistics, click here.

For more information, please contact: Gino Pezzani.

Labor Day is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It’s a national tribute to the contributions workers have made to the strength, prosperity, and well-being of the United States.

Some records show that Peter J. McGuire, general secretary of the United Brotherhood of Carpenters and Joiners and a co-founder of the American Federation of Labor, was first to suggest a day to honor those “who from rude nature have delved and carved all the grandeur we behold.” But other research seems to support the contention that machinist Matthew Maguire, later the secretary of Local 344 of the International Association of Machinists in Paterson, N.J., proposed the holiday in 1882 while serving as secretary of the Central Labor Union in New York.

The Central Labor Union adopted a Labor Day proposal and appointed a committee to plan a demonstration and picnic. Either way, the first Labor Day holiday was celebrated in New York City on Tuesday, Sept. 5, 1882, in accordance with the plans of the Central Labor Union. The Central Labor Union held its second Labor Day holiday just a year later, on Sept. 5, 1883.

In 1884, the first Monday in September was selected as the holiday. As labor organizations grew in size and power, so did the idea of Labor Day. In 1885, Labor Day was celebrated in many industrial centers of the country.

The first governmental recognition of the holiday came through municipal ordinances passed during 1885 and 1886. While the first state bill proposing the holiday was introduced into the New York legislature, Oregon passed the first law on Feb. 21, 1887.

Four more states—Colorado, Massachusetts, New Jersey, and New York—created the Labor Day holiday by legislative enactment that same year. By the end of the decade, Connecticut, Nebraska, and Pennsylvania had followed suit. By 1894, 23 other states had adopted the holiday in honor of workers, and on June 28 of that year, Congress passed an act making the first Monday in September a legal holiday in the District of Columbia and the territories.

As was widely expected, the Bank of Canada raised its overnight policy rate by 0.75 basis points, bringing it to 3.25 per cent.  In the statement accompanying the decision, the Bank noted that while CPI inflation eased somewhat in July, that easing was due only to a fall in gasoline prices and more broad-based measures of price growth like core inflation moved slightly higher. The Bank continues to see excess demand in the Canadian economy, but does anticipate a moderation in the second half of the year. Ultimately, the Bank sees a need for the policy rate to rise further and will be assessing how much higher interest rates need to go to bring inflation back to its 2 per cent target.

The overnight rate is now above the Bank's estimate of "neutral", or the level of its policy rate at which inflation should run at 2 per cent and the economy is operating at full-capacity.  How much further the Bank will go and how long rates will stay above neutral depends entirely on the trajectory of inflation going forward. We expect the Bank will its policy rate at least one more time this year, ultimately settling at 3.5 or 3.75 per cent.

Link:  https://mailchi.mp/bcrea/bank-of-canada-interest-rate-announcement-9d2hl2ry93

For more information, please contact: Gino Pezzani.

It’s once again my honor and privilege to write this monthly letter and find some connection with you, even if it’s just for a few brief moments as you flip through your daily mail. This month I am over-joyed to celebrate Labor Day with you.

Typically, I don’t speak about holidays or major events, but this month I was moved by the concept of work. The day is meant to honor those out in the field, as we call them now, essential workers. Now, more than ever, we can share our appreciation for those on the front lines of healthcare and other essential services keeping us safe for the last three years.

In the larger sense, I was inspired to share my feelings on what it means to be a good worker. Is a good worker going 100% all the time? Do they never take a break or a day off?

If the past almost three years has taught us anything, it’s that we can “do our job” anywhere. Admittedly, I’ve done some work from bed in my PJs and what that has taught me is that it’s okay to relax a little.

I used to think I had to be on a tight schedule, do everything, manage everyone, or else the world would stop spinning. It turns out that my team is what keeps this ship afloat, and if I can’t learn to delegate appropriately, then something important will fall through the cracks, and my facade of the perfect worker bee will, in fact, crumble all because I thought I could “do it all.”

Nobody can do it all, and though it sounds counterintuitive due to what we have been taught to believe, asking for help does make you a good worker. Collaborating, sharing, giving feedback, and asking questions are tools, not weaknesses.

I encourage you to take this idea into your work week and if you’re a leader in your field, try bringing in your co-workers to see if they can help you. You never know what others have up their sleeve when given the opportunity.

Kind Regards,

Gino Pezzani

Your Real Estate/Mortgage Consultant For Life

Fiber, in the form of fruits, vegetables, whole grains, and other carbohydrates that pass through your body undigested, is important to your digestive health, and your overall well- being in general. Too little fiber in the diet is associated with a higher risk of heart disease and diabetes. But only 7% of adults in the U.S. get enough fiber, according to a study reported by U.S. News & World Report.

How much should you eat? Overall, health experts say you should consume 14 grams of fiber for every 1,000 calories you eat in a day. For women, the target is 25 grams in a 2,000-calorie daily diet; and for men, it’s 38 grams in a 2,500-calorie diet. People over 50 years old can consume less.

What should you eat? For starters, try a one-cup serving of pearl barley, which has six grams of fiber, instead of white rice, with just two grams.

National Wildlife Day, Sept. 4. The purpose is to raise awareness about endangered species and their habitats, which need to be protected and rescued.

Labor Day, Sept. 5. A federal holiday in the United States celebrated to honor and recognize the American labor movement.

International Day of Charity, Sept. 5. Established with the objective of sensitizing and mobilizing people, NGOs, and stakeholders all around the world to to help others through volunteer and philanthropic activities.

Autumnal Equinox Day, Sept. 22. The Autumn equinox signals the beginning of Fall. It is the point where there is exactly 12 hours of daylight and 12 hours of darkness at the equator.

The Canadian economy rose 0.1 per cent in June, up for the fifth consecutive month. Goods-producing sectors rose 0.1 per cent while services-producing industries were up 0.2 per cent. Canadian real GDP is now roughly 2.3 per cent above its pre-pandemic, February 2020 level. However, preliminary estimates suggest that output in the Canadian economy declined 0.1 per cent in July.

Growth in the second quarter of 2022 registered 3.3 per cent at an annualized rate from the prior quarter, rising for the fourth consecutive month. Growth was driven by increased business investment in inventories and household spending. As consumers returned to offices amid easing COVID restrictions, consumer purchases of semi-durable goods like garments and footwear increased (+5.6 per cent). However, falling activity in the real estate sector was a drag on growth, with economic activity from home sales and renovations slowing. Investment in housing declined 7.8 per cent in Q2. 

GDP growth in the second quarter, though still strong, is showing signs of slowing. Growth was lower than the Bank of Canada's expectations and likely contracted slightly in July. That slowdown will likely continue as the Bank continues its tightening cycle, particularly in interest rate sensitive sectors like housing. The Bank is expected to raise its overnight rate by another 0.75 per cent in September to 3.25 per cent, but increases in the overnight rate are expected to slow in subsequent announcements. 

Link:  https://mailchi.mp/bcrea/canadian-economic-growth-real-gdp-q2-2022

For more information, please contact: Gino Pezzani.

In BC in July, home sales continued to decline, while starts and new listings were largely steady. Sales fell once again in all areas of the province, with the lower mainland, Vancouver Island and Thompson Okanagan now below pre-pandemic levels. Rental costs in Vancouver and Victoria continue to rise and remain elevated relative to most other points since the onset of the pandemic. 

Retail sales rose in June to a fresh record. Restaurant reservations in Vancouver are currently about 8 per cent above their pre-pandemic level. In BC, Google’s measure of movement trends is currently just 2 per cent below pre-pandemic levels.

Although aggregate employment has recovered to pre-pandemic levels, the accommodation and food service sector was about 13 per cent below the pre-pandemic level in July. The labour market has served high-income workers much better than low-income workers. Employment in high-income industries is about 11 per cent above pre-pandemic employment levels, while employment in low-income industries is about 4 per cent below pre-pandemic employment levels.

Exports and manufacturing sales fell in June, while imports rose slightly.
Consumer confidence retreated in July, likely on continuing fears related to higher inflation expectations and rising interest rates.

The number of US and non-US tourists rose again in June, with both US and non-US tourists reaching the highest level since the onset of the pandemic.

BCREA's updated COVID-19 Recovery Dashboard is available here. 

For more information, please contact: Gino Pezzani.

International Friendship Day was celebrated on July 30th. The test belsimple reminder of what makes some friends your best friends.

Some friends know how to be a polite guest in your home. An authentic friend opens your refrigerator and helps themselves.

Some friends have never seen you cry. A dear friend has shoulders that have been soggy from your tears.

Some friends don’t know your parents' first names. A close friend has texted your parents.

Some friends bring a dish to your party. A real friend comes early to help you cook and stays late to clean up ... and knows where you keep everything.

Some friends hate it when you call after they’ve gone to bed. A humble friend asks why it's been so long.

Some friends want you to be more like them. A true friend loves you just as you are.

Some people think that a friendship is over after an argument. A weathered friend reaches out with a well-timed phone call.

Some friends expect you to always be there for them. A selfless friend knows that they will always be there for you!

Friendship Day is a reason to celebrate all your real friends who allow you to be the same for them

A primary care physician is your first line of defense in maintaining good health. Finding one you like and trust may take a little effort. Here’s some advice from the Healthline website:

Check your network. Staying within your health plan’s network can save you money. Look through your plan’s documents to locate primary care doctors in your community.

Talk to your family and friends. Ask who they go to, and whether they like and trust them. You can also look to other health care workers you know such as your pharmacist, physical therapist, eye doctor, and other health care professionals.

Consider the location. Is it easy for you to visit the doctor’s office? Ask about public transportation, parking, and other access issues. If your doctor’s office is inconvenient to get to, you won’t go as often as you should.

Check availability. How busy is the doctor? Will you be able to get an appointment when you need one? Are tele-visits an option? You should be able to see a doctor quickly when you need to.

Meet the staff. You’ll be interacting with nurses and assistants, not just the doctor. On your first visit, see if they’re friendly and helpful so you’ll be comfortable sharing your concerns with them.

Group vs. Individual practice. In a group practice, you may not always get to see the doctor you choose. On the flip side, if the doctor is a solo practitioner, their availability may be limited.