the rennie review - June 2020

resilience and green shoots the hallmarks of May’s market data While one month of data does not a trend make, signs of an economic recovery have emerged against the backdrop of a regional housing market that remains balanced.

Labour market green shoots: have we reached the bottom? After Canada shed 3 million jobs inMarch and April--by far the most ever lost in a two-month period--almost 300,000 jobs were added in May, surprising many market analysts. British Columbia added just over 43,000 positions, and whileMetro Vancouver lost 8,500 jobs inMay--marking its third consecutive month of losses--the magnitude of decline paled in comparison to the almost 260,000 jobs lost in March and April. Encouragingly, the employment surge in BC was driven by positions that had been hit hardest at the outset of our Great Suppression, with younger workers and jobs in retail, accommodation, and food services leading the way, with all of the growth seen in full-time work. We are cautiously optimistic about our path ahead as British Columbia enters Phase 2 of its re-opening plan. Look for additional modest employment gains in June across BC- -includingMetro Vancouver for the first time in months--along with continued increases in home sales.

inMay, meaning that 2,265 households made a significant financial commitment during the worst economic downturn we’ve experienced in almost a century. That is somewhat remarkable. Furthermore, May’s sales count was significantly higher than in April, with transactions jumping by 28% on a month-over- month basis, compared to the past-decade April-to-May sales bump of 6%. On the supply side of the market, inventory has become increasingly constrained, with May representing the 8th straight month of year-over-year declines in total listings. Compare this to the lead-up to the 2008/9 Great Recession and its aftermath, when our market saw inventory expand for 15 consecutive months. Prices have consequently remained stable throughMay, with the region’s benchmark price down 0.1%, and the average price up 1.2%, versus April.

To say the past fewmonths have been challenging would be an understatement. We have all been impacted by COVID-19, directly or indirectly, and more or less, at home, in the workplace, and in our communities. Collectively we have been dealing with much uncertainty while trying to synthesize a dizzying amount of information aimed at keeping us safe, secure, and solvent. Against this backdrop, it was welcome news to observe a number of positive storylines emerging out of May’s data on our real estate market and our economy. Our housing market has been resilient and remains balanced It’s true that MLS sales across the Vancouver Region inMay were down 44% versus one year earlier, with reduced market activity that set in at the end of March continuing to prevail. But having said that, we would be remiss to not acknowledge that there were still 2,265 sales

Copyright © 2020 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of January 6, 2020. All data from Real Estate Board of Greater Vancouver and Fraser Valley & Rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E. 3

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