January Real Estate Happenings
The coming of the new year brought with it the universal mortgage stress test. This is a significant change to the Canadian real estate market. Starting January 1st, all mortgage applicants will have to qualify at the greater of the contract rate plus two percent, or the Bank of Canada's 5 year benchmark. This means many people will be forced to buy less house than before. Our government must be growing concerned with how much we are borrowing to buy housing.
More locally, the empty homes tax deadline is now past. As of January 29th, there were still 11% of homes that without a declaration. Owners that leave their property vacant face a stiff 1% tax on the assessed valume of the home. It's a bit too early to tell if the EHT is working, but so far the data is encouraging. Our numbers show that January set a record for number of listings recorded to date. The new year usually brings a surge in listings, but this month we saw ~15% more listings than our previous record. If this increased supply also drives prices down over a few months, then I'd chalk that up as win.
Now, on to the numbers.
January Rental Stats
Volumes surged 22.78% from December, and now sits at 5718 listings. This is much higher than the number of listings last January (5068).
Prices are flat across all unit types except 1 BR. Here are the prices:
- Studios $1600 (0.0%)
- 1 bedrooms $1950 (2.63%)
- 2 bedrooms $2650 (0.0%)
- 3 bedrooms $3000 (0.0%)
Year-over-year change saw a large surge in 1 BRs. This is partly due to a dip in 1 BR prices last January. All other unit types are below the mandated cap of 4%.
|Beds||Median 2016||Median 2017||Pct Change|
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