Interest Rates Low for Q3 in Vancouver, BC
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Rental Properties Win Big This Quarter in Vancouver, BC
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(Posted on Nov 11, 2018 at 04:35PM by Danielle Smyth)
According to a recent report, home sales have slowed in Canada. Though the 30-year mortgage rate has remained low, it has increased since 2011, reaching its highest level in those 7 years. As a result, much of the demand in the housing market has shifted towards apartments and rental units. Clearly, this is great news for commercial real estate investors who might be considering the purchase of such properties.Analysts from Marcus & Millichap report that the median price of an existing single-family home as of August 2018 is $267,300. They anticipate that there are 4.3 months of stock, assuming that things continue on pace as they have been. The monthly mortgage payment for a home is now $339 more than an average monthly rent, which could further encourage potential buyers to rent instead.
Furthermore, continued job growth is leading to the formation of more households. However, demand is concentrated in apartments. As a result, there are fewer and fewer multifamily units available. The report states that “Nationally, nearly 82,900 units were constructed in the third quarter, but the positive absorption of more than 107,000 units pushed down the third quarter apartment vacancy rate 40 basis points from the previous quarter to 4.2 percent, the lowest level since 2001.â€
If you’re interested in learning more about opportunities for investment throughout Canada, get in touch with Marcus & Millichap's Vancouver office. One of our experienced commercial real estate advisors will be happy to provide additional information.
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