CorrinaBearden122
Vancouver Real Estate
Vancouver Real Estate market has stayed strong despite the meltdown of our neighbours south. Thanks to a more closely guarded banking system, Canada continues to be able to slide from the mess relatively unscathed. Now you ask: now that the Olympics games are gone for Vancouver, will balance anticipated financial hangover begin?
While using current strength within the Vancouver Real Estate market matched with historically low home loan rates to go with it, you are likely to say "how could we possibly be headed for a meltdown"? Current inventory is low that's again sending Real Estate transactions into multiple offer situations with buyers paying $10,000, $20,000 and perhaps even $200,000 over market price. Although the latter is perfect for a specific product inside a couple of choice neighbourhoods still it has happened. The opportunity for a bubble is definitely there but not with a broad scale. It's more like the micro-markets of Vancouver Real Estate that are getting too much ahead of themselves are at most risk for a bubble.
The Vancouver condo and townhouse market has seen growth within the last year at a pace that has all the right conditions to keep sustainable. 1st-time buyers are likely to be the demographic within this category and are taking advantage of the low mortgage rates. With the recent changes imposed with the Canadian Government on mortgage lending, we have to have a little more of a cushion against a general bubble. The changes included that anyone seeking a home loan with less than 20% downpayment (CMHC insured) would have to met the criteria of a 5 year fixed price mortgage regardless of the term these were seeking. Another safeguard ended up being lower the amount of equity you could withdraw from their home for refinancing purposes from 95% to 90% of the appraised value. Regarding a market retraction this would give you a little more cushion this sort of spending close to what their residence is worth.
The $700,000+ debt left for the shoulders of the Vancouver taxpayers for that construction of the Olympic Village will hopefully be recouped in the next decade. According to recent reports, one local developer surely could cash in on $31.8 million in top quality units from people visiting for that 2 week Olympic period. The village will house approximately 1100 units of mixed income households in a very sustainable community of shopping, services and parks.
However, there are some challenges ahead the future still looks very bright and promising for the Vancouver Real Estate market. Some lessons are actually learned that in hindsight should assist the City and Country steer clear of the same mess the U.S. got themselves into. You will have, although, pockets of bubbles where ignorance is driving people into frenzied buying and driving prices to unsustainable levels.
