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Vancouver Real Estate
Vancouver Real Estate market has always been strong regardless of the meltdown of our neighbours to florida. Thanks to a more closely guarded banking system, Canada may be able to slide with the mess relatively unscathed. Now you ask ,: now that the Olympics games are gone for Vancouver, will as well as anticipated financial hangover begin?
With the current strength inside Vancouver Real Estate market matched with historically low mortgage rates to go with it, you are likely to say "how could we wind up being 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 in some cases even $200,000 over market price. Although the latter is for a specific product inside a couple of choice neighbourhoods it still has happened. The chance of a bubble is unquestionably there but not with a broad scale. It looks more like the micro-markets of Vancouver Real Estate that are getting much ahead of themselves are at most risk for a bubble.
The Vancouver condo and townhouse market has seen growth during the last year at a pace which has all the right conditions to keep sustainable. 1st-time buyers are often the demographic within this category and are enjoying the low mortgage rates. With all the recent changes imposed from the Canadian Government on mortgage lending, we have to have a little more of a cushion against a standard bubble. The changes included that anyone seeking a mortgage with less than 20% downpayment (CMHC insured) would have to qualify of a 5 year fixed price mortgage regardless of the term we were holding seeking. Another safeguard ended up being to lower the amount of equity one could withdraw from their home for refinancing purposes from 95% to 90% in the appraised value. Regarding a market retraction this would give you a little more cushion for those who are spending close to what their residence is worth.
The $700,000+ debt left on the shoulders of the Vancouver taxpayers for that construction of the Olympic Village will hopefully be recouped over the next decade. As outlined by recent reports, one local developer surely could cash in on $31.8 million in high end 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 long run still looks very bright and promising to the Vancouver Real Estate market. Some lessons are already learned that in hindsight should profit the City and Country prevent the same mess the U.S. got themselves into. There will be, although, pockets of bubbles where ignorance is driving people into frenzied buying and driving prices to unsustainable levels.
