Royal LePage’s latest market forecast paints a vivid picture of Canada’s real estate landscape, predicting a significant 9% year-over-year increase in home prices by the fourth quarter of 2024. This upward revision stems from a robust first quarter, with strong price appreciation expected through the second and third quarters before tapering off towards year-end, aligning with seasonal trends.
The forecast highlights notable upgrades in major markets, particularly the Greater Toronto Area (GTA), where prices are anticipated to surge by 10%, surpassing the national average. Montreal follows closely behind with an 8.5% projected increase, while Calgary, Quebec City, and Greater Vancouver are forecasted to experience respective jumps of 8%, 8%, and 5.5%.
Royal LePage President Phil Soper attributes the current modest price rises to consumers, particularly first-time buyers, adapting to higher borrowing costs. However, he anticipates a steeper appreciation curve once the central bank enacts anticipated rate cuts, drawing in rate-focused buyers.
While easing rates will influence price upticks, the fundamental driver remains the severe housing shortage across the country. Soper warns of an intensifying seller’s market, foretelling a busy spring and fall for Canadian buyers and sellers alike.
Looking ahead, Royal LePage’s forecast suggests that by the end of 2026, the majority of mortgages will have transitioned into an elevated borrowing rate environment. Yet, this is not expected to significantly dampen the housing market’s resilience. Soper points to Canadians meeting their mortgage obligations amid record-low default rates and income growth offsetting increased mortgage costs. However, he anticipates a pullback in discretionary spending as individuals prioritize maintaining homeownership.
In summary, Royal LePage’s forecast outlines a dynamic Canadian housing market characterized by soaring prices, driven by a combination of factors including adapting consumer behavior, impending rate cuts, and the persistent housing shortage. Despite looming challenges, the market remains robust, with buyers and sellers navigating towards a seller-centric environment amidst projections of continued price appreciation.
Spring breathes new life into Metro Vancouver’s real estate scene, ushering in a wave of activity from sellers and expanding options for buyers. The latest report from Greater Vancouver REALTORS® (GVR) reveals a significant surge in MLS® listings, with a remarkable uptick of nearly 23 percent compared to the previous year.
March 2024 witnessed 2,415 residential sales in the region, marking a slight dip of 4.7 percent from the same period in 2023. Despite this minor decline, the market maintains its vigor, fueled by demand for competitively priced properties in strategic locales, shifting the balance further into sellers’ favor.
Across detached, attached, and apartment segments, new listings on the Multiple Listing Service® (MLS®) soared by 15.9 percent compared to March 2023, reaching a total of 5,002. Presently, the MLS® system boasts 10,552 properties for sale, indicating a substantial 22.5 percent increase from March 2023.
Analysis of the sales-to-active listings ratio for March 2024 reveals a robust figure of 23.8 percent across all property types. Specifically, the ratio stands at 18.2 percent for detached homes, 31.3 percent for attached homes, and 25.8 percent for apartments. These figures underscore the pressure on home prices, with ratios below 12 percent suggesting downward trends and those surpassing 20 percent indicating upward momentum.
Andrew Lis, GVR’s director of economics and data analytics, acknowledges the market’s relative cooling compared to the previous year but notes modest month-over-month price gains, ranging from one to two percent on aggregate. While Lis anticipates potential cuts to the Bank of Canada’s policy rate in 2024, he warns that these measures may not significantly ease affordability challenges, given the enduring constraints on borrowing power.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver presently stands at $1,196,800, reflecting a 4.5 percent year-over-year increase.
Breaking down the sales data, detached home sales reached 694 in March 2024, down by 5.4 percent compared to March 2023. The benchmark price for detached homes stands at $2,007,900, up by 7.4 percent from March 2023.
Apartment home sales totaled 1,207 in March 2024, marking a 7.9 percent decrease from March 2023. The benchmark price for apartments is $777,500, showing a 5.7 percent year-over-year increase.
Attached home sales witnessed a modest increase of 6.2 percent in March 2024 compared to March 2023, totaling 495 sales. The benchmark price for townhouses rose to $1,112,800, reflecting a 5 percent increase from March 2023.
In summary, while Metro Vancouver’s real estate market experiences heightened seller activity, buyers should anticipate stiff competition, particularly for attractively priced properties in sought-after locations.
New Home Flipping Tax to Hit B.C. Property Sales: Here’s What You Should Know
Premier David Eby has set his sights on speculators, and with the unveiling of the 2024 budget, his government has introduced the “BC Home Flipping Tax” aimed at curbing speculative activity in the housing market.
Effective January 1, the new tax mandates that any profits accrued from the sale of a residential property within two years of its purchase will be subject to taxation, albeit with certain exceptions.
Outlined in the forthcoming legislation to be passed during the spring session, the tax will follow a progressive scale: 20 percent on profits from homes sold within the initial year, gradually decreasing to 10 percent if sold within 18 months, and ultimately dropping to zero after two years of ownership.
According to the Ministry of Finance, this tax measure is anticipated to generate approximately $43 million in annual tax revenue.
“The tax will be applicable to income derived from the sale of properties with a housing unit and those zoned for residential use. It will also extend to income generated from the assignment of contracts related to the purchase of these properties,” states the Budget and Fiscal Plan.
However, exemptions will be granted for individuals selling their primary residence within two years of acquisition, with a maximum exclusion of $20,000 when calculating taxable income.
Exceptions for circumstances such as divorce, death, illness, and work-related relocation will also be considered to waive the tax liability. Details regarding the appeals process and required documentation are yet to be finalized, with tax administrators expected to develop forms and guidelines between now and January.
The revenue collected from this tax will be earmarked for the construction of new affordable housing units across the province, aligning with the government’s objective to bolster housing supply.
Set to take effect on January 1, 2025, the tax will be applicable to properties sold after this date, regardless of the purchase date.
In addition to the new tax, the B.C. budget confirms substantial investments in housing initiatives, including programs like BC Builds. The budget also offers a comprehensive analysis of the housing market’s current state and future trajectory.
Despite challenges such as declining building permits, growing unsold inventory in certain regions, and inter-provincial migration losses, the ministry anticipates a rebound in home sales activity in 2024. Prices are projected to increase by an average of 2.3 percent in the current year and 2.9 percent in 2025, indicating a cautiously optimistic outlook for the real estate market.
The ambitious high-rise project in Vancouver’s West End is facing a multitude of challenges, as developers find themselves in receivership, according to recent filings in the Supreme Court of British Columbia. The venture, located at the intersection of 830-850 Thurlow Street and 1045 Haro Street, was designed to feature a striking 55-storey strata condo tower alongside a 15-storey counterpart, comprising a total of 450 strata condominiums and 66 rental units. The project, as outlined on its website, also included provisions for 42,000 sq. ft of retail space, a 49-space childcare facility, and a brand-new public plaza, making it a significant addition to Vancouver’s skyline.
However, the grand vision has hit a roadblock, with the Bank of Montreal, a secured creditor of the project, submitting a receivership application citing an outstanding debt of $82.2 million in principal and interest. The legal ownership of the development site rests with Harlow Holdings Ltd., while the beneficial ownership falls under the Haro-Thurlow Street Project Limited Partnership (HTLP), which is itself owned by various entities, including 11044227 BC Ltd. (45%), Forseed Haro Holdings Ltd. (45%), and Terrapoint Developments Ltd. (10%). Interestingly, notable Vancouver-based developer Intracorp Homes is involved in the project as the development manager but is not directly implicated in the receivership proceedings.
The roots of the financial crisis lie in the developers’ struggle to meet the City of Vancouver’s stringent requirements for the project, an issue persisting for the past five years. A Council report from June 2022 highlighted concerns about the project’s encroachment on several view cones, prompting the ongoing review of the city’s view cones policies. Despite substantial efforts, the owners failed to secure a development permit, leading to a series of negotiations with creditors, primarily the Bank of Montreal.
The owners, facing mounting challenges, negotiated multiple amendments to their credit agreement, the latest of which occurred in September 2022. This extension pushed the “outside date” for the project to August 31, 2023. However, in early 2023, the Bank of Montreal informed the owners that no further extensions would be granted, compelling them to explore a potential sale of the property.
A significant development in this saga came when CBRE was engaged to facilitate the sale, leading to the reception of six offers by May 2023. These offers, ranging from $81.5 million to $100 million, fell substantially short of the property’s acquisition cost, leading to internal tensions among stakeholders. Notably, an offer by Chard Development for $93 million was not universally accepted, with Terrapoint supporting the offer, while Forseed and 11044227 BC Ltd. rejected it.
This internal discord, coupled with the owners’ resistance to accepting a considerable loss on their investments, led to an impasse. Terrapoint, a minority stakeholder, accused the majority partners of lacking “good faith” reasons for rejecting Chard Development’s offer. In response, the majority partners claimed they were actively seeking to refinance the debt, a claim met with skepticism due to the lack of supporting evidence.
The situation worsened when the owners defaulted on their interest payment in July 2023, prompting the Bank of Montreal to demand payment of $95,520,027.39 by August 29. Despite presenting a forbearance agreement, the owners declined to sign, leading to the initiation of the receivership application by the Bank of Montreal.
In a December affidavit, Kang Yu Canning Zou, a director of the entities under the receivership application, mentioned that the owners had identified three lenders willing to provide loans for debt repayment. However, the Bank of Montreal disputed this claim, stating that no evidence of such lenders had been provided.
The financial intricacies of the project involve a monthly interest cost of $620,000, while the existing rental complex on the site generates only $175,000 in monthly income. This considerable shortfall, combined with the owners’ failure to meet their obligations, eroded the Bank of Montreal’s confidence in their commitment to debt repayment.
In the receivership application, the Bank of Montreal sought the appointment of a receiver with the mandate to arrange a prompt sale of the property. An appraisal conducted by LW Property Advisors in July 2023 pegged the property’s value at $192 million, based on its development potential. However, concerns were raised about whether lenders would recognize this valuation.
Evan Allegretto, President of Intracorp Homes, expressed pessimism about the property’s current value, suggesting it might be even lower than the $93 million offer from Chard Development. Allegretto cited factors such as higher interest rates, tightening credit, rising construction costs, and the limited pool of potential purchasers for a property of this magnitude.
The owners, seeking more time to settle their debt, engaged in another dispute with the Bank of Montreal. The court ultimately ruled in favor of appointing Deloitte as the receiver as of January 12. However, Deloitte is restrained from undertaking any sales efforts until after February 23, and approval of sale offers is prohibited until after April 26.
If a sales process is initiated, the receiver is likely to collaborate with a commercial real estate brokerage for listing and marketing the property. The subsequent offers would be scrutinized, and the selected offer would require final approval from the court, adding an additional layer of complexity to the resolution of this intricate financial and legal quagmire.
Hello and welcome back to our channel! In today’s video, we will be discussing the latest real estate trends in Metro Vancouver. According to a report by the Real Estate Board of Greater Vancouver, home buyer confidence has returned, resulting in rising home prices despite a decrease in listings. Here are the five most important things you need to know from the report.
Sales are rebounding: Despite the pandemic’s effects on the economy and the previous interest rate hikes, home sales in Metro Vancouver have rebounded, increasing near levels seen last spring. In April 2023, residential home sales in the region totalled 2,741, representing a 16.5% decrease from the same period in 2022, and 15.6% below the 10-year seasonal average.
Low inventory levels are creating competitive conditions: There is a shortage of resale supply available relative to the pool of active buyers in the market, which is creating competitive conditions where almost any resurgence in demand would lead to price escalation, despite the elevated borrowing cost environment.
Prices are increasing: The MLS HPI data shows that home prices have already increased about 5% year-to-date, outpacing the forecasted 1-2% increase by year-end. The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,170,700, representing a 2.4% increase compared to March 2023 and a 7.4% decrease from April 2022.
Decrease in listings: The report shows a 29.7% decrease in the number of detached, attached, and apartment properties newly listed for sale on the Multiple Listing Service (MLS) in April 2023 compared to April 2022. The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,790, representing a 4.2% decrease compared to April 2022.
Sales-to-active listings ratio: The sales-to-active listings ratio for April 2023 across all detached, attached, and apartment property types is 32.7%. The ratio is 24.4% for detached homes, 40.1% for townhomes, and 37.4% for apartments. When the ratio dips below 12% for a sustained period, it suggests downward pressure on home prices, while a ratio surpassing 20% over several months often leads to upward pressure on prices.
Conclusion: In summary, the Vancouver real estate market has experienced a surprising rebound in home sales, but the low inventory levels have created competitive conditions resulting in increasing home prices. The decrease in listings has contributed to a shortage of resale supply available relative to the pool of active buyers in the market. We will have to wait and see whether these price increases will be sustained into 2024. That’s all for today’s video, make sure to like and subscribe to stay up-to-date with the latest real estate news.
The Vancouver real estate market is experiencing a surge in multiple offer situations due to a low inventory of available properties. This trend is especially clear in a condo and the townhouse markets in Greater Vancouver. However, the current trend is different from the past as these multiple offers are much closer to the listing price. In the past, during multiple offer situations, properties would sell for 10 or even 20 percent over the listing price.
The Vancouver real estate market has been one of the hottest and most competitive markets in North America for the past several years. The city’s picturesque location and robust economy have attracted many buyers, making it difficult for many first-time homebuyers to enter the market. This situation has been exacerbated by a low inventory of available properties.
The low inventory of available properties has created a competitive environment for buyers, and as a result, multiple offer situations have become more common. In a multiple offer situation, several buyers make an offer on the same property, which can drive up the price. However, in the past, during these multiple offer situations, the price would often exceed the listing price by a significant margin.
Today, the situation is different. Buyers are still making offers on the same properties, but the offers are much closer to the listing price. This trend is likely due to several factors. Firstly, buyers are becoming more educated and savvy about the market. They are aware of the risks of overbidding and are therefore more cautious. Secondly, historically high interest rates makes it much harder to qualify for mortgages.
The shift towards more reasonable offers is a positive development for both buyers and sellers. Buyers are more likely to get the property at a fair price, while sellers can sell their property without worrying about overpricing or underpricing.
However, the competitive environment created by the low inventory of condos and townhouses is still present, and multiple offer situations are still happening. Buyers need to be prepared and do their due diligence before making an offer. They should have a good understanding of the market and the value of the property. It’s also important to work with a reputable real estate agent who can guide them through the process.
In conclusion, the Vancouver real estate market is experiencing a surge in multiple offer situations due to a low inventory of available properties. However, the current trend is different from the past as these multiple offers are much closer to the listing price. This is a positive development for both buyers and sellers and is likely due to increased education and transparency in the market. Buyers should still be prepared for a competitive environment and do their due diligence before making an offer.
If you’re a buyer in greater Vancouver area in the fall of 2022 I have some good news for you. The market seems to be in your favour. You probably have heard of crazy bidding wars, subject free offers and real estate selling for well over the asking price. At the moment the market is slower and this could present a great opportunity to buy. This doesn’t mean that you should buy. That part is really up to you. In this post I am hopping to provide you with 5 tips that would make your buying experience smoother.
1. Get a mortgage pre-approval
I know you’ve probably heard this tip a hundred time already. But it’s more relevant than ever before. First of all the interest rates have been on the rise. By getting a mortgage pre-approval you can lock-in current interest. This is especially valuable if interest rates go up in the future. Second reason why you want to get a mortgage pre-approval is knowing how much you can borrow. Maybe you’ve gotten a mortgage pre-approval a few months ago, and you’re hopping to be approved for the same mortgage amount. Unfortunately with rising interest rates you might be surprised how much your borrowing power is being effected. Chances are you will qualify for a lower mortgage amount than before witch in turn will dictate your real estate budget.
So before going out there and looking for real estate you should get a mortgage pre-approval.
2. Take your time looking. Start early. Get some experience.
When the market was really active buyer felt a lot more pressure to buy quickly. If you waited to long there was a chance to get priced out of the market. Places that used to cost $500,000 now cost $550,000 and some buyers simply couldn’t afford such price increases.
The story is different now. The market for the most part is flat in some cases the prices are even declining. Which is a good news for the buyers. Now you can take your time looking for that perfect property that hits most of your requirements. There isn’t as much urgency behind trying to buy something quickly. In this type of market buyers usually have more choices and are overall more satisfied with their purchases.
3. Don’t drag your feet. Trying to time the market is impossible. When you see something that you like be ready to pull the trigger.
This might seem counter intuitive to the previous point but let me explain. Because, there is less urgency to buy sometimes buyers can fall into the trap of thinking “what else is out there?”. I like this unit and it hits everything in our criteria but “what else is out there?” or “maybe a better unit will come to the market next week?”. Sometimes people are trying to time the market perfectly and buy at the lowest price possible. But that’s impossible. If there was a way to time the market perfectly that would be fantastic but unfortunately there isn’t.
I’ve seen this happen so many times especially with firs time buyers. They find a place that they really like but they fall into the trap of thinking that there might be a better unit out there. Or maybe the prices will go down even lower. We would not make an offer on the unit that buyers really like and the unit would sell to someone else. Months would go by and a similar unit would not come up again.
Don’t rush to buy but also don’t drag your feet. If the unit that you really like and hits most of your criteria is available take action quickly and secure it. You don’t know when another similar unit will come up for sale.
4. Negotiate. And know what places are going for. You don’t want to be unreasonable. But in a current market buyers can score some great deals.
Because the market is a bit slower at the moment you, as a buyer, have more leverage to negotiate and try to lower the price. Of course you have to be reasonable but now is the time to try to negotiate. It’s important to know what is the current value of the property you’re interested in. Sometimes sellers might be unrealistic and they want to sell their property for the prices from 8 months ago. It’s crucial for you and your real estate agent to do the homework and to figure out a fair market value for the property.
5. Make sure to do your inspections and document reviews. Because the market is slower buyers have the ability to review documents properly and to order an inspection.
Slower market means that subject free offers are almost non-existent. Most offers that I see today include conditions: such as subject to financing, subject to reviewing strata documents, subject to inspection, subject to insurance and a few others. Don’t be hesitant to include the subjects that work in your favour, subjects that would allow you to perform due diligence. I would especially recommend to carefully read strata documents if you’re buying a strata unit. And don’t be afraid to ask many questions. Pay attention to potential or current problems with the building and make sure to review insurance information.
I hope you will find those tips useful. Feel free to share this post with anyone who you think will find it useful. And good luck with your search.
Let’s take a look at one bedroom and studio condo market in Downtown Vancouver. We will only look at the resale market, new construction units are excluded.
Average Sales Priceof ONE bedroom condo units in downtown Vancouver in November 2017 (see graph below)
Coal Harbour: $949,654 | +57.2% (change since November 2016)
Downtown VW: $677,564 | +24.2% (change since November 2016)
West End: $812,839 | +19.3% (change since November 2016)
Yaletown: $600,800 | +23.2% (change since November 2016)
Average Percent of Original Price
Average Percent of Original Asking Pricefor ONE bedroom condo units in downtown Vancouver in November 2017 (see graph below)
Coal Harbour: 99.2% | +2.5% (change since November 2016)
Downtown VW: 105.7% | +5.9% (change since November 2016)
West End: 101.2% | +3.7% (change since November 2016)
Yaletown: 99.8% | -1.2% (change since November 2016)
Average Price Per Square Foot
Average Price Per Square Footfor ONE bedroom and studio condos in downtown Vancouver in November 2017 (see graph below)
Coal Harbour: $1,526 | +59.0% (change since November 2016)
Downtown VW: $1,143 | +26.0% (change since November 2016)
West End: $1,170 | +18.7% (change since November 2016)
Yaletown: $979 | +18.1% (change since November 2016)
Total Inventory
Total Inventoryof ONE bedroom and studio condo units in downtown Vancouver in November 2017 (see graph below)
Coal Harbour: 12 | -50.0% (change since November 2016)
Downtown VW: 56 | -65.0% (change since November 2016)
West End: 23 | -51.1% (change since November 2016)
Yaletown: 27 | -44.9% (change since November 2016)
New Listings
All New Listingsof ONE bedroom and studio condo units in downtown Vancouver in November 2017 (see graph below)
Coal Harbour: 11 | +37.5% (change since November 2016)
Downtown VW: 66 | +26.9% (change since November 2016)
West End: 26 | -13.3% (change since November 2016)
Yaletown: 28 | -3.4% (change since November 2016)
Sales
Total Salesof ONE bedroom and studio condos in downtown Vancouver in November 2017 (see graph below)
Coal Harbour: 9 | +125.0% (change since November 2016)
Downtown VW: 50 | +19.0% (change since November 2016)
West End: 28 | +27.3% (change since November 2016)
Yaletown: 30 | +50.0% (change since November 2016)
Sales to Actives Ratio
Sales to Active Listings Ratioof ONE bedroom and studio condos in downtown Vancouver in November 2017 (see graph below)
Coal Harbour: 0.750 | +349.1% (change since November 2016)
Downtown VW: 0.893 | +239.5% (change since November 2016)
West End: 1.217 | +160.0% (change since November 2016)
Yaletown: 1.111 | +172.3% (change since November 2016)
In conclusion, Downtown Vancouver condo market is still a very strong seller’s market. A lot of units are selling over the asking price. We smallest inventory numbers in years. Prices are continuously climbing up month-after-month. This condo market is not showing any signs of slowing down.
Here is a closer look at the detached housing market in Vancouver BC in November 2017. We will only consider resale houses. New construction and condo units are not included.
MLS Home Price Indexof detached houses in Vancouver BC in November 2017 (see graph below)
Vancouver East: $1,573,500 | +6.7% (change since November 2016)
Vancouver West: $3,573,700 | +1.5% (change since November 2016)
Average Sales Price
Average Sales Priceof detached houses in Vancouver BC in November 2017 (see graph below)
Vancouver East: $1,564,770 | +8.9% (change since November 2016)
Vancouver West: $3,749,045 | -2.4% (change since November 2016)
Average Percent Of Original Price
Average Percent of Original Asking Priceof detached houses in Vancouver BC in November 2017 (see graph below)
Vancouver East: 96.5% | +2.6% (change since November 2016)
Vancouver West: 93.2% | +0.5% (change since November 2016)
Total Inventory
Total Inventoryof detached houses in Vancouver BC in November 2017 (see graph below)
Vancouver East: 750 | -0.7% (change since November 2016)
Vancouver West: 731 | +17.7% (change since November 2016)
New Listings
New Listingsof detached houses in Vancouver BC in November 2017 (see graph below)
Vancouver East: 209 | +2.5% (change since November 2016)
Vancouver West: 133 | +12.7% (change since November 2016)
Sales
Total Salesof detached houses in Vancouver BC in November 2017 (see graph below)
Vancouver East: 88 | +14.3% (change since November 2016)
Vancouver West: 79 | +23.4% (change since November 2016)
Sales to Actives Ratio
Sales to Active Listings Ratioof detached houses in Vancouver BC in November 2017 (see graph below)
Vancouver East: 0.117 | +14.7% (change since November 2016)
Vancouver West: 0.108 | +4.9% (change since November 2016)
In conclusion, Vancouver East and Vancouver West detached housing market are both balanced markets. Housing prices are for the most part staying flat. Inventory and sales levels are average for the season.
We have seen countless number of news stories about unaffordable rental rates in Metro Vancouver. It’s a hot subject in the media and with local politicians. The rent has been steadily increasing for a long time. But it seems that in the last coupe of years it has really “shot up”.
Local residents don’t know how to deal with such rent increases. There even is a tenants union that has been created back in April of 2017.
City of Vancouver is trying to deal with a problem by passing a foreign buyers tax, a vacant home tax and regulations for short-term rentals. Last week the city has released their 10 year housing strategy. The new strategy will encourage developers to build more rental suites within their “for sale” buildings. It will also promoted more co-ops and affordable living units. Many critics says the new strategy is not aggressive enough. But it’s a good start.
In my opinion, the rental rate increases we’ve seen in the last 4-5 years are not the end of it. CBC news wrote an article about the rent increases in the last 5 years. This article also includes census of rental increase by a neighbourhood in Metro Vancouver from 2011 to 2016. Most neighbourhoods went up in rent by 30-50%. That’s a big increase in only 5 years. Full article: here.
Condo prices in the last 12 months in most Metro Vancouver neighbourhoods have gone up by 30-45%. These price increases will have upward pressure on the rental market. I think we are going to see huge rental rate increase in the next 24-48 months and beyond. And the real estate condo market is not showing any signs of slowing down in the near future.
I would not be surprises to see 50-60% increase in rental rates in Metro Vancouver over the next 3 years. Especially since we are currently at close to zero vacancy rate.
All of the proposed and implemented changes and taxes are a good steps but they are too late. The city is reacting to the huge price increases that already took place. The bottom line is that huge rental rate increases are not over. Even if the real estate market prices don’t increase any more, we will still see an increase in the rental rates as a reaction to the condo market price increases that already took place.
