Canadian Home Sales Continue to Climb in June

Our take: Rising sales activity is noise for income investors—what matters is whether rents are accelerating faster than cap rates are compressing, which the data doesn't show yet. Pursue deals in supply-constrained markets where sales momentum translates to tenant demand, but pass on competitive bidding wars in hot markets where cap rates have already collapsed.

In your underwriting: Tighter cap rate assumptions in competitive markets and potential for higher acquisition costs reducing NOI margin, though rent growth assumptions may strengthen in supply-constrained regions if tenant demand outpaces new unit delivery.