I hope you are enjoying your summer, and that you are healthy and safe with family. Despite a global pandemic, the multi family investment market continued to show its strength and resiliency throughout the spring and into the summer. Though the volume of sales has diminished in recent months, buyers remain confident and actively seeking opportunities, while sellers continue to achieve record sales prices per suite.
Much to the benefit of buyers and owners on refinancing properties, interest rates remain low with no signs of increasing anytime soon, however, recent changes to multi family refinancing rules with CMHC have altered how some owners will refinance and grow their portfolios. The result of these rules may increase the cost of funds and potentially reduce the cash available for buyers, which could put pressure on cap rates, depending upon the supply that is available.
It has been an interesting summer, to say the least. The pandemic has caused us all to slow down and reevaluate our investments and I hope you take comfort knowing you hold some of the most stable assets available during a time of great uncertainty. I am confident we will continue to have strong demand for apartments as new buyers come to the multi family market seeking the stability you have enjoyed!
The market is moving fast, and it is important to have relevant and current information when making important decisions. I hope you find the information contained in this edition of the landlord report helpful, and should you have any questions feel free to reach out anytime.
Disclaimer: Not intended to solicit sellers or buyers currently under contract. Royal LePage® is a registered trademark used under license. You should not use any information contained on this report as a substitute for consultation with brokers, realtors, or other professional advisors. All information contained herein is from reliable sources, but, no warranty is made as to the accuracy of the data. Sources: Realnet.