Net operating income divided by purchase price gives the rate, so the number moves with rent, vacancy, taxes and insurance as much as with price. Two houses at the same $444,700-level price can post very different rates once one needs a new furnace and the other does not.
Financing shapes the target more than most buyers expect. A non-owner-occupied purchase generally needs a 20 percent down payment because CMHC insured financing is not available on it, so a larger buyer contribution changes the return math from day one, before a single tenant moves in.
With 1.63 months of supply in the city, a disciplined buyer can still negotiate on price, which is the lever that moves a cap rate more than almost anything else. Get your hand-reviewed valuation from Joel Dyck.