A bumpy real estate market will rattle renters too

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The pressure on the rental market is higher than ever, exacerbated by interest rate hikes and increased demand

Vancouver property sales have slowed, as sellers are less likely to list their homes. But prices are holding fairly steady in the country’s priciest market. That means for renters, the pressure on the rental market is higher than ever, exacerbated by interest rate hikes and increased demand. And that pressure could intensify now that landlords have an opportunity to increase rents.

“The process of fighting these rent increases is very long and exhausting for most tenants who do not even fully understand the legislation,” Mr. Aggoune said. A broader perspective, such as that provided by the Canadian Real Estate Association, which looks at the benchmark price over a year, shows a far slower adjustment.

Mr. Li, who is based in Vancouver, said prices in Vancouver have no been immediately impacted by the higher interest rate, which recently went up a full percentage point to 2.5 per cent. Some suburbs are likely hit harder because of the pandemic phenomenon that saw first-time buyers moving away from the city. That trend has eased up. Vancouver prices are staying strong because instead of reducing their prices, would-be sellers are not selling.

“People who were fighting to buy houses and putting in stupid prices, now they are saying, ‘the market is going down, I’m going to wait.’ Really? Because you can now buy with subjects, and we don’ t get the unicorns right now,” she says, referring to that one buyer who will throw “crazy” money at a property.

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