Southseacompany posted a few stories about our changing market and dropping rents as some people move away from city cores.
“People are leaving the cores of major cities, including Vancouver, and that has led to some rent drops.”
“The average monthly rent in Vancouver in October for a two-bedroom apartment was the highest in Canada at $2,712, but it was an eight per cent drop from a year earlier, the steepest fall in B.C.”
For a while there the most sensible money move if you had a small apartment available was to rent it out in a short term basis on Air BnB, but that market has crashed lately.
Does that mean more units looking for long term tenant and with more supply will we see lower rent prices? So far rents are down about 7% since December, will they bounce back soon?
Southseacompany pointed out these latest stats.
According to the Real Estate Board of Greater Vancouver the typical Vancouver home lost $7,600 in value last month.
Sales are where the big drops are being seen though, they dropped more than 30% from the previous month and more than 40% from the previous year.
Read more here.
They expect a 25% drop in some regions:
Canada’s national housing agency says the number of new homes being built and sold will remain below the levels they were at before COVID-19 until 2022 at least, and prices won’t get back to where they were for another two years either.
In a special report, the Canada Mortgage and Housing Corporation said Wednesday that the COVID-19 pandemic will lead to a “historic recession in 2020,” which will lead to “significant falls in indicators of the housing market.”
Just like the flu, but more so!
Spam filter seems to be back on track, so that’s good news.
Let’s do our end of the week news round up and open topic discussion, here are a few recent links to kick off the chat:
–Downturn in sales expected to last for years
–Who will buy the new supply?
–Falling rents pose a big risk
–Inflation turns negative
–Ready to go back to school?
–Deferral cliff could see 18% house price drop
So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!