CarolyneDehart307
De Communautique.
Vancouver Real Estate
Vancouver Real Estate market has stayed strong inspite of the meltdown of our neighbours towards the south. Thanks to a more closely guarded banking system, Canada has become able to slide with the mess relatively unscathed. Absolutely suit: now that the Olympics games are no longer for Vancouver, will the much anticipated financial hangover begin?
Using the current strength inside the Vancouver Real Estate market matched with historically low rates on mortgages rising to go with it, one would say "how could we possibly 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 in some cases even $200,000 over market price. Although the latter is for a specific product inside a couple of choice neighbourhoods still has happened. The opportunity of a bubble is certainly there but not with a broad scale. It's 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 includes all the right conditions to keep sustainable. 1st-time buyers are generally the demographic within this category and are taking advantage of 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% 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 would have been to lower the amount of equity you could withdraw from their home for refinancing purposes from 95% to 90% from the appraised value. When it comes to a market retraction this would give a little more cushion for those who are spending close to what their home is worth.
The $700,000+ debt left around the shoulders of the Vancouver taxpayers for the 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 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 very sustainable community of shopping, services and parks.
Though there are some challenges ahead the long run still looks very bright and promising to the Vancouver Real Estate market. Some lessons are actually learned that in hindsight should profit 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.
