As restrictions start to lift and people return to work many are wondering how the recent pandemic has affected rental rates and if it is better to sell or rent out their property. Let’s take a look at the 1-2 bedroom condo market to see what has been happening.
According to rentals.ca the average cost of a one bed unit in Vancouver was up 6.8% in May over April (m/m) and +7.2% over the same time last year (y/y) with an average monthly rent at $2,022. Two bedroom units also had a positive increase +3% (m/m) but with an overall decline -5.8% (y/y) with an average monthly rent of $2,552.
By comparison, available inventory for sale in the 1 and 2 bedroom condo market has increased 36%, however, sales have slowed. That being said, those properties that are priced right are being snapped up quickly (median days on market is 19) for almost full asking price.
So, what does this mean. Well, we certainly did not see the market crash or drastic drops in rental rates that many speculated would happen amidst the Covid–19 pandemic. The Vancouver housing market slowed slightly but stayed strong overall.
In the coming months, many factors will influence what happens going forward and there are numerous questions that we still don’t know the answers to. How quickly will small and medium sized business’s recover. Will consumers regain their confidence in the economy or take a wait and see attitude? Will we experience a second round of closures and restrictions, in the fall?
Nobody knows the answers for sure. However, we do know Vancouver has had a hot real estate market for well over a decade. Slow downs mean there are deals to be had if you are thinking of investing in a revenue property, while a fast-paced market usually means increased prices and increased rents. Either way, it is good to view the market over the long term. Ride out the peaks and valleys and rely on the professionals around you. Give us a call if you would like to see how we can help you make your move.