Vancouver Real Estate
Vancouver Real Estate market has always been strong regardless of the meltdown of our neighbours south. Thanks to a more closely guarded banking system, Canada has become able to slide over the mess relatively unscathed. Now you ask: now that the Olympics games are over for Vancouver, will as well as anticipated financial hangover begin?
With the current strength within the Vancouver Real Estate market matched with historically low home loan rates to go with it, one would say "how could we often be headed for a meltdown"? Current inventory is low that's again sending Real estate property transactions into multiple offer situations with buyers paying $10,000, $20,000 and even even $200,000 over shop price. Although the latter is made for a specific product in a couple of choice neighbourhoods it still has happened. The potential for a bubble is unquestionably there but not on a broad scale. It looks more like the micro-markets of Vancouver Real estate property that are getting past an acceptable limit ahead of themselves are at the 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 be sustainable. 1st-time buyers are often the demographic within this category and are taking advantage of the low mortgage rates. Using the recent changes imposed through the Canadian Government on mortgage lending, we ought to have a little more of an cushion against a total bubble. The changes included that anyone seeking home financing with less than 20% advance payment (CMHC insured) would have to are eligible of a 5 year fixed interest rate mortgage regardless of the term we were holding seeking. Another safeguard ended up being lower the amount of equity you can withdraw from their home for refinancing purposes from 95% to 90% from the appraised value. Regarding a market retraction this would provide a little more cushion if you are spending close to what their home 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 in the next decade. In accordance with recent reports, one local developer was able to 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 the sustainable community of shopping, services and parks.
Though there are some challenges ahead the future still looks very bright and promising for your Vancouver Real Estate market. Some lessons are actually learned that in hindsight should help the City and Country avoid 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.