مستخدم:EdsonRaynor495
Vancouver Real Estate
Vancouver Real Estate market has stayed strong despite the meltdown of our neighbours towards the south. Thanks to a more closely guarded banking system, Canada has been able to slide over 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 the Vancouver Real Estate market matched with historically low mortgage rates to go with it, you are likely to say "how could we possibly be headed for a meltdown"? Current inventory is low that is again sending Property transactions into multiple offer situations with buyers paying $10,000, $20,000 and even even $200,000 over list price. Although the latter is good for a specific product in a couple of choice neighbourhoods it still has happened. The potential for a bubble is certainly there but not on the broad scale. It appears more like the micro-markets of Vancouver Real Estate that are getting too far ahead of themselves are at most risk for a bubble.
The Vancouver condo and townhouse market has seen growth over the past year at a pace which includes all the right conditions to remain sustainable. 1st-time buyers are generally the demographic in this category and are taking advantage of the low mortgage rates. With the recent changes imposed with the Canadian Government on mortgage lending, we need to have a little more of your cushion against a general bubble. The changes included that anyone seeking home financing with less than 20% downpayment (CMHC insured) would have to meet the requirements of a 5 year fixed interest rate mortgage regardless of the term these were seeking. Another safeguard was to lower the amount of equity you can withdraw from their home for refinancing purposes from 95% to 90% with the appraised value. In the case of a market retraction this would provide a little more cushion for those who are spending close to what their house is worth.
The $700,000+ debt left on the shoulders of the Vancouver taxpayers for the 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 top end units from people visiting to the 2 week Olympic period. The village will house approximately 1100 units of mixed income households in a sustainable community of shopping, services and parks.
Although there are some challenges ahead the long run still looks very bright and promising for your Vancouver Real Estate market. Some lessons happen to be learned that in hindsight should assist the City and Country stay away from 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.