Rates, Renters & Where to Invest Under $500K

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Welcome back to another Monthly Market Update episode of the Victoria Real Estate Podcast! This week, your hosts Adrian Maclaren, Vincent Baart, and Jocelyn Cseff from the CityNest team at RE/MAX Camosun are joined by returning guest and mortgage expert David Steinberg.

We’re covering everything from:

• The latest real estate stats for May and June
• Shifting affordability in BC’s rental market
• Mortgage strategies in today’s environment
• And… what we’d each buy if we had $500K to invest

Plus, we share a few laughs, stories from the past week (including Adrian’s first Indian wedding experience), and give a special shoutout to our first-ever sponsor, Canine Car Care!

🔹 Episode Highlights

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🏡 Market Update Rundown

📊 June 2025 Overview

• 3 years since the 2022 peak — market still down moderately
• No major crash, but buyers from 2021/22 are feeling it
• Inflation + wage growth are improving long-term affordability
• Victoria's low unemployment and purpose-built rental focus = supply remains in check
• We're likely still 2–5 years away from full price recovery based on historical condo corrections

💰 Affordability Outlook

• Affordability has improved since 2022, but not enough for a rebound
• Any recovery will likely be slow unless:
  • Interest rates drop significantly
  • New construction stays limited

💬 Is Now the Time to Buy?

• Short-term gains unlikely (especially condos)
• But for long-term buyers, current conditions may offer value

🏢 May 2025 Market Recap

• 758 sales (flat YoY when adjusted for business days)
• Strong new listings — highest trend in 15 years, but mostly recycled inventory
• Market balance improved slightly in May
• Detached prices holding, condos slipped again
• Interest rate decision pending — variable-rate demand now at 44%

📉 BC Renters Report Discussion

• Only 53% of renters plan to buy eventually; just 16% in next 2 years
• 59% spend 1/3+ of income on rent; 25% spend over half
• 44% are saving for down payments; 26% working second jobs
• Rents in Victoria remain high:
  • 1-bed: $2,160 | 2-bed: $2,890
• Tenants gaining power, but rent drops may have bottomed out
• 56% of renters support more affordable housing

💼 Mortgage Segment with David Steinberg

• Fixed vs variable is nearly a toss-up right now
• Bond yields up slightly (oil), but no rate impact yet
• David leans fixed — but variable could save ¼ interest if rates drop
• Hybrid mortgages now trending — combine fixed + variable + HELOC
  • Only available through big banks, not monolines
• Strategic mortgage planning more important than ever

🏘️ What Would You Buy for $500K?

Your hosts and guest debate the best real estate investment under $500K:

• What types of properties would we choose?
• Which areas would we target?
• Is cash flow still king in 2025?

📍 Neighbourhood Highlight: Esquimalt

• Local community spotlight
• What’s changing, what’s coming, and why it might be worth a closer look

Thanks for tuning in!
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 🌐 Connect with us at citynest.ca