The latest addy is located in the heart of Vancouver, the Canadian city that, at the moment, has the highest rents in the country and is neck and neck with Toronto for the highest prices for those looking to buy.
Vancouver may be at a crossroads, however, with some experts forecasting a dip in prices and others expecting the market to remain hot. Let’s take a look at what’s happening in the real estate market in Vancouver.
Vancouver real estate
When The Bank of Canada raised its key interest rate 0.5% in the first week of April, it was thought that it could curtail some of the buying frenzy and high prices that have been seen for almost the entire pandemic. The initial hike alone is the highest increase made in more than 20 years, and the Bank of Canada is considering another raise in June.
It’s likely that a change, however slight, is coming in housing prices….but when? The Bank of Canada estimates that the dip may occur into 2023 by almost 4%; others suggest they are already starting to see some hesitancy in purchase.
According to the British Columbia Real Estate Association (BCREA), the average price for a house in the greater Vancouver area in March 2022 was $1,337,447, an 11% change year–over-year. However, there were only 7,970 active listings in the area at the same time, which constitutes a 17.3% decrease in a year.
Supply continues to dwindle, but there is no certainty when housing prices may drop, and if they will drop significantly enough to welcome many first time home buyers to the property ownership market.
A recent report by Rentals.ca detailed a massive jump in rent over the last year. According to the site, in February 2022, the average rent for a one-bedroom apartment was $2,239, nearly a 15% increase in one year. Two-bedrooms saw a similar increase, with the average rental price just exceeding $3,000 per month.
While Toronto is similarly high, the jump in rent in Vancouver across one year was the highest in the country. The city that experienced the next highest jump since February 2021 wasn’t Ontario’s capital – it was British Columbia’s capital. Indeed, Victoria rents jumped 22% in one year.
In just three years, the average rent for a one-bedroom in Vancouver jumped nearly 50%.
As reported in 2016 Census data, about 77,000 households in Vancouver are experiencing unaffordable, unsuitable or inadequate housing. These households are described as being in housing need. Unfortunately, that 2016 data is the most recently available, and likely doesn’t represent the current situation. Data collected from the 2021 census will be available next spring.
Where are we now?
While there is a nationwide push to build new housing, that process takes years. With many recent buyers locked into fixed mortgage rates, the move by The Bank of Canada may not see its full effect for years to come.
For now, with so many people waiting to buy, the rental market remains hot as prices are high and vacancy rates are low.
addy in Vancouver
The latest addy offers Canadians the opportunity to break into the commercial real estate market with previously inaccessible opportunities to invest. The Cambie Apartments in the heart of the city present an opportunity to invest in a historic building and sought-after rental apartment that recently underwent modern renovations. With full occupancy and a vibrant community surrounding it, this building looks to grow in value and continue to attract interest across a 10-year term.
Only members can invest, so join our unique platform to take part in fractional ownership. The addy drops soon, so get your addy wallet ready.