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July Real Estate Happenings
PadMapper's rental report about one bedrooms at $2090 has been getting attention lately. Single room suites breaking $2000 makes a good headline, but it was mostly scare mongering. Our numbers show that median rent for July was $1900, which is a modest increase of 2.7% over June. So while one bedroom rents did go up, it's not that bad.
In my last report, I discussed the possibility of our central bank hiking interest rates. Well, it happened. On July 12th, Stephen Poloz pulled the trigger and rates are now at 0.75%. People are telling me that this is a return-to-normal. I wouldn't know though because, as a millennial, I've lived with emergency rates my entire adult life.
One consequence of higher rates is that banks will loan less money to people buying real estate. Since prices are set by how much people can borrow, we could see the cost of buying come down. If prices do moderate, we will have to reconsider the rent-or-own decision.
On the political front, we got a new housing minister. In late June, the NDPs managed to vote the Liberals out of power. The new ruling party assigned BC's housing portfolio to Selina Robinson, a surpise pick over David Eby. The popular housing critic was instead appointed Attorney General. Last we've heard, Robinson is currently reviewing all housing related measures
July Rental Stats
In July, listing volume across the city increased by 4.6%. Mt-Pleasant-W, (+8.7%), Marpole (4.7%), and Mt-Pleasant-E (+3.2%) led the charge in volume growth. Rental volumes in other neighbhourhoods were pretty much unchanged from last month.
Median rental prices are up for almost all segments (month over month changes in parentheses).
- Studios $1650 (+5.7%)
- 1 bedrooms $1900 (+2.7%)
- 2 bedrooms $2650 (+3.2%)
- 3 bedrooms $2900 (+0%)
I don't know what the guys at StatsCan are doing, but they claim that inflation is sub 2%. This looks like inflation of housing costs to me.
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