Canadian retail sales increased 0.3 per cent in July to $66.1 billion, led by increases at food and beverage retailers (+1.3 per cent). Excluding volatile items, sales were up 1.3 per cent month-over-month. In volume terms, retail sales declined 0.2 per cent in July. Retail e-commerce trade rose by 2.4 per cent to $4 billion in July, amounting to 6 per cent of total retail sales. 

Sales in BC rose 1.4 per cent in July. BC retail sales are up 1.2 per cent from the same time last year. In the CMA of Vancouver, retail sales were up 2 per cent from last month and 1.9 per cent from July of 2022.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian prices, as measured by the Consumer Price Index (CPI), rose 4 per cent on a year-over-year basis in August, up from 3.3 per cent in July. Excluding gasoline, CPI rose 4.1 per cent year-over-year in August, the same rate as July. Shelter costs were up 6 per cent year over year, up from 5.1 per cent in July, driven by mortgage interest costs (up 30.9 per cent from last year) along with rents (up 6.5 per cent). Grocery prices were up 6.9 per cent year over year in August, down from 8.5 per cent in July. Month over month, seasonally adjusted CPI rose 0.6 per cent. In BC, consumer prices rose 3.8 per cent year-over-year.

The annual change in CPI continued rising in August as gasoline base year effects ended (the year-over-year change in gasoline prices was positive for the first time since January). Although food price inflation continued to gradually ease, shelter and rent inflation rates rose from July. Moreover, the Bank of Canada's measures of core inflation, which strip out volatile components, remained stubbornly high; all three measures were flat or rose in August. With softening labour markets and a flat preliminary July GDP estimate following a small contraction in June, the Bank of Canada opted not to raise rates again in September. However, bond yields jumped following the unexpectedly hot August CPI release, suggesting markets think the Bank could change course again. Guiding inflation back down to 2 per cent was sure to be a bumpy ride and the possibility of another rate hike at the next meeting on October 25th or before the end of the year appears to be still on the table.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian housing starts fell 1 per cent to 252,787 units in August at a seasonally adjusted annual rate (SAAR). Starts were down 6 per cent from the same month last year. Single-detached housing starts rose 2 per cent to 55,665 units, while multi-family and others fell 2 per cent to 197,121 (SAAR). 

In British Columbia, starts were unchanged in August at 50,687 units SAAR in all areas of the province. In areas in the province with 10,000 or more residents, single-detached starts rose 34 per cent m/m to 6,314 units while multi-family starts fell 4 per cent to 41,115 units. Starts in the province were 4 per cent above the levels from August 2022. Starts declined by 4.2k in Vancouver and rose by 2.6k in Victoria and 0.2k in Kelowna, while remaining unchanged in Abbotsford from the previous month. The 6-month moving average trend in BC rose by 4.1 per cent to 53,512 SAAR.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian employment rose by 40,000 (0.2 per cent) in August. The Canadian unemployment rate remained flat at 5.5 per cent, pausing after having risen three prior consecutive months. Average hourly wages rose 4.9 per cent year-over-year to $33.47 in August, while total hours worked were up 2.6 per cent from August of last year.

Employment in BC rose 0.4 per cent to 2.79 million, while employment in Metro Vancouver rose 0.6 per cent to 1.58 million. The unemployment rate fell to 5.2 per cent in BC, down from 5.4 per cent in July, while falling to 5.8 per cent in Metro Vancouver. 

Copyright British Columbia Real Estate Association. Reprinted with permission.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver* is currently $1,208,400. This represents a 0.2% decrease from July 2023 and a 2.5% increase from August 2022.

Specifically:

- The benchmark price for detached homes increased 0.3% from July 2023 and increased 3.3% from Aug 2022.

- The benchmark price for townhouses decreased 0.2% from July 2023 and increased 3.9% from Aug 2022.

- The benchmark price for apartment/condos decreased 0.1% from July 2023 and increased 4.4% from Aug 2022.

*Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.