BrinkerhoffPeabody262
Aus Salespoint
Vancouver Real Estate
Vancouver Real Estate market has always been strong regardless of the meltdown of our neighbours towards the south. Thanks to a more closely guarded banking system, Canada has been able to slide from the mess relatively unscathed. Now you ask ,: now that the Olympics games have ended for Vancouver, will the much anticipated financial hangover begin?
With all the current strength inside 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 is again sending Property transactions into multiple offer situations with buyers paying $10,000, $20,000 and perhaps even $200,000 over market price. Although the latter is for a specific product in a couple of choice neighbourhoods still it has happened. The opportunity of a bubble is unquestionably there but not over a broad scale. It seems more like the micro-markets of Vancouver Real-estate that are getting past an acceptable limit ahead of themselves are at most risk for a bubble.
The Vancouver condo and townhouse market has seen growth in the last year at a pace that has all the right conditions to be sustainable. 1st-time buyers are generally the demographic within this category and are enjoying the low mortgage rates. With the recent changes imposed through the Canadian Government on mortgage lending, we need to have a little more of the cushion against an overall bubble. The changes included that anyone seeking a mortgage with less than 20% deposit (CMHC insured) would have to are eligible of a 5 year set rate mortgage regardless of the term these were seeking. Another safeguard ended up being to lower the amount of equity you could withdraw from their home for refinancing purposes from 95% to 90% in the appraised value. When it comes to 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 on the shoulders of the Vancouver taxpayers for that construction of the Olympic Village will hopefully be recouped over the next decade. Based on recent reports, one local developer surely could cash in on $31.8 million in high-end units from people visiting for your 2 week Olympic period. The village will house approximately 1100 units of mixed income households in the sustainable community of shopping, services and parks.
However, there are some challenges ahead the longer term still looks very bright and promising to the Vancouver Real Estate market. Some lessons happen to be learned that in hindsight should help the City and Country prevent the same mess the U.S. got themselves into. There'll be, although, pockets of bubbles where ignorance is driving people into frenzied buying and driving prices to unsustainable levels.
