Vancouver's Home Sales Stabilized at a Low Level in March, National Bank Says

Based on data from the Real Estate Board of Greater Vancouver (REBGV), National Bank of Canada's preliminary estimate is that seasonally adjusted home sales remained almost unchanged, or 0.1% lower, from February to March.This stabilization follows a slight rise of 3.2% in February after a drop of 10.7% in January.As a result, transactions continued to be very low on a historical basis and stood 30.2% below their historical average, noted the bank in a note last week.Resale market activity has not benefited so far from back-to-back rate cuts by the Bank of Canada in September and October, despite an improvement in the region's labor market, in contrast to a deterioration in the other two major Canadian cities since the beginning of the year, National Bank pointed out.It is likely that ongoing uncertainty surrounding trade relations with the United States, coupled with affordability challenges in the region, has continued to weigh on activity levels, added the bank.Should trade relations improve, the potential boost in consumer confidence could stimulate activity in the residential market, given the more favorable interest rate context, according to the bank.

-- Based on data from the Real Estate Board of Greater Vancouver (REBGV), National Bank of Canada's preliminary estimate is that seasonally adjusted home sales remained almost unchanged, or 0.1% lower, from February to March.

This stabilization follows a slight rise of 3.2% in February after a drop of 10.7% in January.

As a result, transactions continued to be very low on a historical basis and stood 30.2% below their historical average, noted the bank in a note last week.

Resale market activity has not benefited so far from back-to-back rate cuts by the Bank of Canada in September and October, despite an improvement in the region's labor market, in contrast to a deterioration in the other two major Canadian cities since the beginning of the year, National Bank pointed out.

It is likely that ongoing uncertainty surrounding trade relations with the United States, coupled with affordability challenges in the region, has continued to weigh on activity levels, added the bank.

Should trade relations improve, the potential boost in consumer confidence could stimulate activity in the residential market, given the more favorable interest rate context, according to the bank.