Category Archives: economy

BC, economy, renting, supply

Some landlords packing up and leaving town

114
114 Comments

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.

BC, data, economy, renting

What do falling rents mean for the condo market?

318
318 Comments

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.”

Canada, economy, predictions

Covid 19: Lasting economic damage

374
374 Comments

Canadas top central banker says there will be lasting economic damage due to the Covid-19 pandemic with a “prolonged and bumpy” path to recovery.

In his first speech as governor, Tiff Macklem says the central bank expects to see growth in the third quarter of this year as people are called back to work and households resume some of their normal activities as restrictions ease.

But he warns that Canadians shouldn’t expect the short and sharp economic bounce-back expected over the coming months to last.

The combination of uneven reopenings across provinces and industries, the unknown course of consumer confidence, and unemployment rates will “likely inflict some lasting damage to demand and supply,” Macklem says in a speech Monday.

He said ongoing physical distancing rules may mean workplaces can’t be as productive as they once were, adding that many services will remain difficult to deliver.

Not everybody’s job will come back.

BC, Canada, CMHC, economy, opinion, predictions, prices, supply

CMHC: Pandemic will affect housing market until 2022

107
107 Comments

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!