Canadian prices, as measured by the Consumer Price Index (CPI), rose 3.8 per cent on a year-over-year basis in September, down from 4 per cent in August. Excluding gasoline, CPI rose 3.7 per cent year-over-year in September. Shelter costs were up 6 per cent year over year, the same increase as August, driven by mortgage interest costs (up 31 per cent from last year) along with rents (up 7 per cent). Grocery prices were up 5.8 per cent year over year in September, down from 6.9 per cent in August and 8.5 per cent in July. Month over month, seasonally adjusted CPI rose 0.2 per cent. In BC, consumer prices rose 3.3 per cent year-over-year.

Price appreciation took a breather last month, bucking expectations and slowing in September. While shelter inflation continued to show high price growth, food inflation has softened significantly since the start of the year, falling by nearly half from over 10 per cent in January. While still stubbornly high, the Bank of Canada's measures of core inflation, which strip out volatile components, moderated in September. Amid weakening labour markets and flat GDP growth, this unexpectedly cool inflation report offers hope that the Bank of Canada may not need to tighten as much as expected, and bond yields fell following the release. Markets now put the majority odds on the bank holding rates steady for the remainder of the year. 

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian housing starts rose 8 per cent to 270,466 units in September at a seasonally adjusted annual rate (SAAR). Starts were down 9 per cent from the same month last year. Single-detached housing starts rose 2 per cent from last month to 56,880 units, while multi-family and others rose 10 per cent to 213,585 units (SAAR). 

In British Columbia, starts fell 18 per cent from last month to 40,493 units SAAR in all areas of the province. In areas in the province with 10,000 or more residents, single-detached starts fell 10 per cent m/m to 5,621 units while multi-family starts fell 21 per cent to 31,409 units. Starts in the province were 25 per cent below the levels from September 2022. Starts declined by 5.3k in Vancouver and by 5.4k in Victoria while rising by 780 units in Kelowna from last month. In Abbotsford, starts were unchanged. The 6-month moving average trend in BC fell by 3.5 per cent to 51,108 SAAR.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian employment rose by 64,000 (0.3 per cent) in September. The Canadian unemployment rate remained flat at 5.5 per cent, now unchanged for three consecutive months. Average hourly wages rose 5 per cent year-over-year to $34.01 in September, while total hours worked were up 2.6 per cent from September of last year.

Employment in BC rose 0.9 per cent to 2.81 million, while employment in Metro Vancouver rose 2 per cent to 1.61 million. The unemployment rate rose to 5.4 per cent in BC, up from 5.2 per cent in August, while remaining unchanged at 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 $1,203,300. This represents a 0.4% decrease from August 2023 and a 4.4% increase from September 2022.

Specifically:

- The benchmark price for detached homes decreased 0.1% from Aug 2023 and increased 5.8% from Sep 2022.

- The benchmark price for townhouses decreased 0.5% from Aug 2023 and increased 5.3% from Sep 2022.

- The benchmark price for apartment/condos decreased 0.2% from Aug 2023 and increased 5.8% from Sep 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.