TownerLanderos480
Vancouver Real Estate
Vancouver Real Estate market has stayed strong regardless of the meltdown of our neighbours south. Thanks to a more closely guarded banking system, Canada may be able to slide through the mess relatively unscathed. Now you ask: now that the Olympics games are over for Vancouver, will balance anticipated financial hangover begin?
Using the current strength in the Vancouver Real Estate market matched with historically low increasing to go with it, one would say "how could we possibly 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 perhaps even $200,000 over list price. Although the latter is good for a specific product in a very couple of choice neighbourhoods it still has happened. The opportunity for a bubble is obviously there but not with a broad scale. It appears 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 during the last year at a pace which has all the right conditions to be sustainable. 1st-time buyers are usually the demographic in this category and are using the low mortgage rates. While using recent changes imposed through the Canadian Government on mortgage lending, we need to have a little more of an cushion against a general bubble. The changes included that anyone seeking a home financing with less than 20% advance payment (CMHC insured) would have to meet the requirements of a 5 year fixed price mortgage regardless of the term these folks 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% of the appraised value. When it comes to a market retraction this would give a little more cushion if you're spending close to what their property is worth.
The $700,000+ debt left about the shoulders of the Vancouver taxpayers for the construction of the Olympic Village will hopefully be recouped on the next decade. According to recent reports, one local developer was able to 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.
Although there are some challenges ahead the long run still looks very bright and promising to the Vancouver Real Estate market. Some lessons have been learned that in hindsight should conserve the City and Country steer clear of 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.
