Summary from the July 2021 Real Estate statistics by the Real Estate Board
Sales 🔼 : 54% increase compared from June 2020, and a 11.9% decrease from April 2021. Last month’s sales were 18.4% above the 10-year June sales average.
Inventories🔽 : 18.5% decrease compared to July 2020 (11424) and a 9.1% decrease compared to June 2021 (10839).
Price 🔼: Benchmark price for all residential properties in Metro Vancouver is currently $1,175,100. This represents a 13.8% increase over July 2020 and unchanged compared to June 2021.
“Low housing supply remains a fundamental factor in Metro Vancouver’s housing market,” Stewart said. “Home sales remain above average and we’re starting to see price increases relent as well. Going forward, the supply of homes for sale will be among the most critical factors to watch. This will determine the next direction for house price trends.”
My comments:
I have been recommending downtown condos under $600k for a while now as investments. Today I would like to talk about detached properties. (We also use single houses interchangeably) Everyone knows detached houses has the most investment potential, but why?
I will touch up a little on the return today. Let’s take the rental return on a detached house in East Van as an example. It is not uncommon for a detached property that has 2 rental suites on the lower floor and a 3-bedroom unit on the main floor. Depends on the city zoning, there could be a laneway house at the back as additional mortgage helper. So the owner can live in the 3 bedroom suite on the 2nd floor. The 2 rental suites on the lower level could easily go for $2500 in total (in most cases there are 2 suites, 1 br and 2br suites ) The rent for laneway house ranges from $1700-$2100. The rental suites alone can generate close to $5000/month. If the owner decided to rent out the 3 bedroom suite upstairs, it could easily go for another $2500/ month which adds up to $7500/month. The rental income for the entire house is around $80,000 per year! And I have not mentioned huge potential for the lot as well. The land could be used to build a duplex or townhouses in the future! A property recently sold as a reference:
