Canadian prices, as measured by the Consumer Price Index (CPI), rose 3.4 per cent on a year-over-year basis in May, down from 4.4 per cent in March. The decline was mostly driven by lower gasoline prices from this time last year (-18.3 per cent). Month over month, CPI rose 0.4 per cent, in large part due to higher mortgage interest and traveler accommodation costs. Shelter costs were up 4.7 per cent year over year, driven by much higher mortgage interest costs (up 29.9 per cent from last year) along with higher rents (up 5.7 per cent from May 2022). The homeowner's replacement cost, which tracks home prices, was down 0.1 per cent year over year. Grocery prices were up 9 per cent year over year, down from 9.1 per cent last month. In BC, consumer prices rose 3.4 per cent year-over-year.

After unexpectedly hot inflation in April, the CPI cooled in May, with year-over-year prices rising at the slowest rate since June 2021. Much lower gasoline prices compared to the same time last year are doing much of this work, but recovering supply chains also contributed, with furniture and household appliances both on average cheaper than the same time last year. The Bank of Canada's measures of core inflation, which strip out volatile components, are trending downwards and are now mostly below 4 per cent year-over-year. Despite this progress, other components of the CPI remain stubbornly high, particularly food and shelter costs. Excluding energy prices, the CPI was up 4.6 per cent from last year, a rate that is still well beyond the Bank's target. In the context of solid GDP growth, a robust labour market, and a rebounding housing market, financial markets expect that the Bank will raise its benchmark interest rate by another 25 basis points to 5 per cent at its next meeting on July 12th. 

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian seasonally adjusted retail sales rose 1.1 per cent in April to $65.9 billion. Sales rose in 8 of 9 subsectors, but the increase was led by higher sales at general merchandise retailers (+3.3 per cent) and food and beverage retailers (+1.5 per cent). Core retail sales, which strips out gasoline and motor vehicle and parts dealers, rose 1.5 per cent. In volume terms, sales rose 0.3 per cent in April. 

In BC, seasonally adjusted sales rose 0.5 per cent in April. Compared to the same month last year, retail sales were down 0.1 per cent in the province. In the Greater Vancouver region, sales fell 1.4 per cent month-over-month and were down 1.4 per cent year-over-year.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian housing starts fell 23 per cent to 202,494 units in May at a seasonally adjusted annual rate (SAAR). Starts were down 28 per cent from the same month last year. Single-detached housing starts rose 3 per cent to 55,967 units, while multi-family and others fell 29 per cent to 146,528 (SAAR). 

In British Columbia, starts fell by 33 per cent in May to 40,536 units SAAR in all areas of the province. In areas in the province with 10,000 or more residents, single-detached starts rose 7 per cent m/m to 6,207 units while multi-family starts fell 39 per cent to 32,010 units. Starts in the province were 3 per cent below the levels from May 2022. Starts were down by 22k in Vancouver, while rising by 0.6k in Victoria, 0.6k in Kelowna, and 1.7k in Abbotsford. The 6-month moving average trend fell 2.6 per cent to 49.9k in BC in November. 

Copyright British Columbia Real Estate Association. Reprinted with permission.

Enjoy an outdoor OASIS on your own 430 sq ft rooftop deck! BEAUTIFUL northeast-facing 880 sq ft 2 bed/2 bath unit in Victoria Hill Highrises w/2 parking stalls, 2 lockers & 2 outdoor spaces! Modern finishes throughout incl: granite, stainless steel, eng. h/w flooring & huge washer/dryer! Great strata & 800k in CRF.

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Canadian employment fell by 0.1 per cent to 20.11 million in May. The Canadian unemployment rate rose to 5.2 per cent after holding steady at 5 per cent since December. A decline in employment of 77,000 for youths (aged 15 to 24) more than offset a 63,000 rise in employment for middle-aged workers (aged 25 to 54). Total hours worked were up 2.2 per cent year over year, while average hourly wages were up 5.1 per cent from May of last year.

Employment in BC was little changed in May, rising 0.1 per cent to 2.781 million, while rising by 0.7 per cent in Metro Vancouver to 1.575 million. The unemployment rate held steady at 5 per cent in BC and fell to 4.9 per cent in Metro Vancouver.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Enjoy an outdoor OASIS on your own 430 sq ft rooftop deck! BEAUTIFUL northeast-facing 880 sq ft 2 bed/2 bath unit in Victoria Hill Highrises w/2 parking stalls, 2 lockers & 2 outdoor spaces! Modern finishes throughout incl: granite, stainless steel, eng. h/w flooring & huge washer/dryer! Great strata & 800k in CRF.

RESORT-style amenities: party room, gym, o/d pool & hot tub, billiards room, library & 2 guest suites. Victoria Hill is lovely area w/parks, trails, etc, perfect for families or dog-owners. Small grocery store, cafe, sushi & Italian restaurants in the neighbourhood & d/t New West is 15 min walk/5 min bus ride. 2 pets allowed (cats & dogs or 1 of each) & rentals allowed (no AirBnB).

MLS# R2782140

FANTASTIC south-facing, 831 sq ft, 2 bed/2 bath unit in The Fitzgerald in Brentwood Park w/2 parking stalls! This condo is bright & modern w/granite finishes, laminate flooring & tons of UPDATES incl: popcorn ceiling removal, new paint & lighting throughout, new s/s fridge & dishwasher, new full-sized washer-dryer & new blinds.

Pro-active strata & $1.8M in CRF! Fitzgerald has great amenities: party room, gym, o/d hot tub & a meeting room. EXCELLENT location w/Skytrain & Brentwood Park shopping, dining, banks, etc, within 2 blocks. 2 pets allowed (1 dog & 1 cat) & rentals allowed (no short-term). 1 locker. Dynamic neighbourhood undergoing exciting changes - the place to be in Burnaby!

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RESORT-style amenities: party room, gym, o/d swimming pool & hot tub, billiards room, library & 2 guest suites. Victoria Hill is lovely area w/parks, trails, etc, perfect for families or dog-owners. Small grocery store, cafe, sushi & Italian restaurants in the neighbourhood & d/t New West is 15 min walk/5 min bus ride. 2 pets allowed (1 dog & 1 cat) & rentals allowed (no AirBnB). Showings start now. Check out virtual tour!

OPEN HOUSE: Sat. June 10, 3-5pm, Sun. Jun 11, 2-4pm.

MLS# R2782140

FANTASTIC south-facing, 831 sq ft, 2 bed/2 bath unit in The Fitzgerald in Brentwood Park w/2 parking stalls! This condo is bright & modern w/granite finishes, laminate flooring & tons of UPDATES incl: popcorn ceiling removal, new paint & lighting throughout, new s/s fridge & dishwasher, new full-sized washer-dryer & new blinds.

Pro-active strata & $1.8M in CRF! Fitzgerald has great amenities: party room, gym, o/d hot tub & a meeting room. EXCELLENT location w/Skytrain & Brentwood Park shopping, dining, banks, etc, within 2 blocks. 2 pets allowed (1 dog & 1 cat) & rentals allowed (no short-term). 1 locker. Dynamic neighbourhood undergoing exciting changes - the place to be in Burnaby! Showings start immediately.

FANTASTIC south-facing, 831 sq ft, 2 bed/2 bath unit in The Fitzgerald in Brentwood Park w/2 parking stalls! This condo is bright & modern w/granite finishes, laminate flooring & tons of UPDATES incl: popcorn ceiling removal, new paint & lighting throughout, new s/s fridge & dishwasher, new full-sized washer-dryer & new blinds.

Pro-active strata & $1.8M in CRF! Fitzgerald has great amenities: party room, gym, o/d hot tub & a meeting room. EXCELLENT location w/Skytrain & Brentwood Park shopping, dining, banks, etc, within 2 blocks. 2 pets allowed (1 dog & 1 cat) & rentals allowed (no short-term). 1 locker. Dynamic neighbourhood undergoing exciting changes - the place to be in Burnaby! Showings start immediately. OPEN HOUSE: Sat. June 3 & Sun. June 4, 2-4 pm.

Canadian real GDP was flat in March. Service-producing industries were unchanged from the prior month which goods producing industries edged down 0.1 per cent. Canadian real GDP is now roughly 3.6 per cent above its pre-pandemic, February 2020 level. Preliminary estimates suggest that output in the Canadian economy rose 0.2 per cent in April.

GDP grew 0.8 per cent in the first quarter of 2023, following roughly zero growth in the previous quarter. Almost all of this growth was concentrated in the month of January. Goods-producing sectors rose 0.1 per cent while services-producing sectors rose 0.9 per cent. The public sector (educational services, health care and social assistance, and public administration) was the largest contributor to growth for the third consecutive quarter. Exports rose 2.4 per cent in the first quarter, while imports rose just 0.2 per cent, spurring growth. Higher household spending on goods (1.5 per cent) and services (1.3 per cent) also pushed GDP upwards. Higher borrowing costs, meanwhile, caused housing investment to fall 3.9 per cent in the first quarter, with new construction (-6.0 per cent), renovations (-2.1 per cent), and ownership transfer costs (-1.5 per cent) all declining. Compensation of employees rose 1.7 per cent from the prior quarter, but disposable income nevertheless fell 1 per cent largely as a result of lower government transfers compared to last quarter. 

Canadian GDP outpaced expectations in the first quarter, expanding 3.1 per cent on an annualized basis. Following over a year of rate hikes from the Bank of Canada, the economy remains robust in many areas. A burst of economic growth at the start of the year supported a high first quarter growth rate, but April's preliminary GDP estimate shows growth continuing into the second quarter. Although housing markets swooned in the immediate aftermath of rate hikes, in recent months they have shown signs of a solid recovery. At 5 per cent, the Canadian unemployment rate remains near record lows. Meanwhile, inflation remains hot, with the year-over-year rate increasing to 4.4 per cent in April from 4.3 per cent in March. These indicators will put some pressure on the central bank to potentially change course following its 'conditional pause' on further rate hikes as of January. The Bank's rate decision next Wednesday will need to balance persistently hot numbers with the risk of overtightening given the long lags of monetary policy. 

Copyright British Columbia Real Estate Association. Reprinted with permission.