We are seeing a slight uptick in the sales compared to what we have been seeing over the last couple of weeks as consumers gain some confidence and maybe signs of the summer holidays slowly coming to an end. At one point this week I saw the number of sales get up to 120.
When looking at the real estate market, I spend most of my time talking about the real estate market in relation to buying and selling real estate. If you are a current homeowner I am sure it has crossed your mind, to sell and cash out now and just rent. This week we are looking at the rental rates which on their own are experiencing their own price growth versus the costs of buying and owning a home. Whether it's inflation or supply chain constraints, costs of goods are continuing to rise, which has led to the increase in interest rates. When comparing the rent prices we are going to focus on the Rent Analysis Guide provided by Associate Property Management for the summer 2022 as well comparing it with Spring 2022 to see where rent has increased.
You can put these two side by side and it shows a fairly significant rent increase from spring 2022 to summer 2022. Keep in mind this is all a guide and used as a tool, and based on it being a seasonal indicator the numbers will be lagging. For instance, the rent for a 1 bedroom and a den on the downtown towers, rent range increased from $1,750-$2,100+ in spring to $2,100-$2,400+ in the summer.
It is hard to believe the costs of rent, and many home buyers also weigh the costs of rent to what they would pay for, in a mortgage. For downtown 1 bedroom and den condos that have sold in the last 6 months the average sale price was $585,000 on 17 sales. Just for instance assuming an interest rate of 4.24% and an amortization period of 25 years for a purchase of $585,000 using ratehub.ca mortgage calculator the mortgage payment would be just over $3,000 with 5% down and $2,523 with 20% down. Not taking into account any of the additional costs of ownership (strata payments, land transfer tax, insurance, utilities, etc) Rent prices have increased and this is another factor we watch when looking at the overall real estate market, as we look at the other options, potential buyers might have as they decide to buy or hold steady and rent.
Have a great week and reach out if there is anything in the world I can do for you.
Personal Real Estate Corporation
Coldwell Banker Horizon Realty
2021 Top 3% Internationally Coldwell Banker