Home prices in Greater Vancouver continue their decline for an eight-month as buyers and sellers are both hesitant to enter the market.
Although there has been an uptick in sales this month, there's not much to suggest that the market is turning around.
The chief economists from both RBC and CIBC have voiced their opinion that we are not going to see a real estate crash. However, it is likely we are going to see the market continue to slowly decline until at least the spring of 2023.
The inflation rate for October 2022 has just been released and inflation remains at 6.9% just like in September 2022. The Bank of Canada has stated that they will be mostly looking at CPI core inflation which has also remained unchanged at 6.2%.
It is now clear that inflation is going to be a long-term problem that won't be addressed anytime soon. With core inflation remaining persistent, the Bank of Canada will find it difficult to lower interest rates anytime soon. The next interest announcement is scheduled for December 7th, 2022 with a predicted 0.25-0.5% hike.
Inflation Rate October 2022
Housing supply and new listings are at an all-time long, with most sellers holding off and hoping for a more bullish market in spring.
I believe that we won't see a flood of buyer demand in Spring, especially with core inflation proving so persistent. Instead, we will enter a new market where buyers get comfortable with these higher rates and sellers slowly come to terms with reality and lower their asking prices.
Written by Daniel Zhao REALTOR®
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