With more people staying home all the time it seems that the demand for homes is up. The REBGV reports than last month saw sales almost a quarter higher than the 10 year average and a record high for the last 5 years.
“Homebuyer demand has been at near record levels in our region since the summer,” said REBGV chairwoman Colette Gerber.
Sales were up 22.7 per cent from the 2,498 sales recorded in November 2019, but down sharply, 16.9 per cent, from the 3,687 homes sold in October 2020.
Read the full article over at the Vancouver Sun.
For the first time in history more people left BC than moved here during the first half of this year. That’s had an impact on rents and caused some major landlords to rethink their investments, putting large rental blocks up for sale.
Link from Southseacompany:
“With immigration to B.C. hitting negative levels – more people left the province for other regions than arrived in 2020’s first half for the first time in history – Vancouver rents are declining while insurance premiums for apartment buildings have increased an average of 75%, property taxes have soared and capitalization rates have flatlined in the sub-3% range. This has resulted “in a dampening of enthusiasm to invest in the province’s biggest city,” according to Avison Young”
Read the full article here.
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.