BeachamDones71
Vancouver Real Estate
Vancouver Real Estate market has remained strong despite the meltdown of our neighbours towards the south. Thanks to a more closely guarded banking system, Canada has become able to slide from the mess relatively unscathed. Absolutely suit: now that the Olympics games are over for Vancouver, will as well as anticipated financial hangover begin?
While using current strength inside Vancouver Real Estate market matched with historically low increasing to go with it, one could say "how could we come to be headed for a meltdown"? Current inventory is low that's again sending Property transactions into multiple offer situations with buyers paying $10,000, $20,000 and in some cases even $200,000 over shop price. Although the latter is good for a specific product in the couple of choice neighbourhoods still has happened. The chance of a bubble is obviously there but not on the broad scale. It looks more like the micro-markets of Vancouver Real Estate that are getting much 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 has all the right conditions to keep sustainable. 1st-time buyers are usually the demographic in this category and are taking advantage of the low mortgage rates. While using recent changes imposed by 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 a home loan with less than 20% deposit (CMHC insured) would have to meet the requirements of a 5 year fixed interest rate mortgage regardless of the term they were seeking. Another safeguard was to lower the amount of equity one could withdraw from their home for refinancing purposes from 95% to 90% in the appraised value. In the matter of a market retraction this would offer a little more cushion if you are spending close to what their residence is worth.
The $700,000+ debt left about the shoulders of the Vancouver taxpayers to the construction of the Olympic Village will hopefully be recouped within the next decade. According to 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 inside a sustainable community of shopping, services and parks.
Though there are some challenges ahead the long run still looks very bright and promising for the Vancouver Real Estate market. Some lessons have been learned that in hindsight should profit the City and Country avoid the same mess the U.S. got themselves into. You will see, although, pockets of bubbles where ignorance is driving people into frenzied buying and driving prices to unsustainable levels.
