September 5, 2023
According to the monthly report from the Real Estate Board of Greater Vancouver (REBGV), the Metro Vancouver housing market has experienced a seasonal slowdown, resulting in price stability. Here is a summary of the key points from the report:
Overall, the report indicates that the Metro Vancouver housing market has experienced a seasonal slowdown, resulting in price stability. The market has shown resilience despite higher borrowing costs and interest rate fluctuations. The sales and price trends are now aligning with historical patterns, and the market is expected to continue at a more moderate pace.
Summary of the July 2023 Metro Vancouver Real Estate Report/ 七月2023年溫哥華都會區房地產市場摘要:
The July 2023 Metro Vancouver real estate market exhibited strong sales, leading to a further increase in home prices across all types of properties. The report, released by the Real Estate Board of Greater Vancouver (REBGV), highlights key trends and insights in the market.
Insights and Reflags:
Overall, the report indicates a robust real estate market in Metro Vancouver characterized by strong sales, increasing prices, and adaptability to changing economic conditions. However, the inventory shortage and ongoing price growth warrant close monitoring to assess potential market dynamics and implications for buyers and sellers
When buying a condo in BC Vancouver, water deductible insurance is an important factor to consider due to several reasons:
Increasing Deductibles: Strata policies for condos in Vancouver have seen a significant increase in deductibles for water damage and sewer backup claims. These deductibles can be as high as $250,000 or more. This means that if there is a water-related incident in the building, such as a pipe burst, and the damage exceeds the deductible, the condo owner may be responsible for covering the remaining amount.
Financial Responsibility: If the condo owner does not have extra insurance to cover the strata's deductible, they may be personally responsible for paying the deductible amount in case of damage caused by their unit. This can lead to a substantial financial burden, especially if the deductible is in the range of hundreds of thousands of dollars.
Limited Coverage: Standard condo insurance policies typically cover a certain amount of the strata's deductible, usually around $25,000. However, with the increasing deductibles, this coverage may not be sufficient to cover the entire amount. It is important to review your condo insurance policy and consider purchasing additional coverage to bridge the gap between the strata's deductible and your policy's coverage limits.
Availability of Coverage: Not all insurance companies offer coverage for high deductibles. It is important to shop around and find an insurance provider that offers coverage for these increased deductibles. Some companies may provide options to purchase additional coverage to protect against high deductibles.
To ensure you are adequately protected when buying a condo in BC Vancouver, it is recommended to:
Please note that the information provided here is a general overview, and it is advisable to consult with an insurance professional to understand the specific details and requirements related to water deductible insurance when buying a condo in BC Vancouver.
Governor of the Bank of Canada Monetary Policy Report Press Conference Opening Statement
July 12, 2023
Review and Summary:
In today's announcement, the Bank of Canada raised its policy interest rate by 25 basis points to 5% and confirmed its commitment to quantitative tightening. The decision was based on two main considerations. Firstly, while monetary policy has been effective in combating inflation, underlying inflationary pressures have proven to be more persistent than anticipated. The increase in interest rates aims to slow down economic demand and alleviate price pressures. Secondly, the bank aims to strike a balance between the risks of under- and over-tightening monetary policy, avoiding unnecessary economic hardship.
The global and Canadian economies have exhibited stronger-than-expected growth, with persistent inflationary pressures in services driven by robust demand and tight labor markets. Consumer spending on services remains strong, and there has been some pickup in activity in the housing market. Factors such as a tight labor market, wage growth exceeding what is consistent with price stability, and accumulated savings from the COVID-19 pandemic have been supporting household spending.
While consumer price index (CPI) inflation has declined, it is largely due to lower energy prices and base-year effects. Core inflation, which measures underlying inflationary pressures, has not decreased as much as anticipated. Although near-term inflation expectations are moderating, they remain high. The Bank of Canada expects economic growth to moderate, and inflation to ease over time, but at a slower pace than previously forecasted. The forecast suggests that the economy will move into modest excess supply in early 2024, relieving price pressures.
The decision to raise the policy rate reflects the persistence of excess demand and underlying inflationary pressures. The Governing Council concluded that a more restrictive monetary policy was necessary to bring inflation back to the target of 2%. While acknowledging the challenges posed by higher rates for Canadians, the Bank emphasized that the full effects of previous rate increases take time to manifest. Future rate decisions will be based on available information, with the objective of gradually returning inflation to the target level.
The Bank of Canada remains vigilant about the risks of excess demand and underlying inflation, and it acknowledges the potential for inflation to rise if there are upside surprises. The bank will carefully assess incoming data, including demand growth, wage pressures, corporate pricing behavior, and inflation expectations, to determine the appropriate course of action. The ultimate goal is to achieve price stability, which fosters sustainable economic growth and provides Canadians with confidence in budgeting and investment decisions.