OvalleGodsey418
Vancouver Real Estate
Vancouver Real Estate market has always been strong despite the meltdown of our neighbours to the south. Thanks to a more closely guarded banking system, Canada may be able to slide over 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 Vancouver Real Estate market matched with historically low rates on mortgages rising to go with it, you might 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 many cases even $200,000 over list price. Although the latter is good for a specific product in a couple of choice neighbourhoods it still has happened. The chance of a bubble is unquestionably there but not on the broad scale. It's more like the micro-markets of Vancouver Real Estate that are getting too far ahead of themselves are at most risk for a bubble.
The Vancouver condo and townhouse market has seen growth over the past year at a pace containing all the right conditions to remain sustainable. 1st-time buyers are often the demographic on this category and are enjoying the low mortgage rates. With the recent changes imposed by the Canadian Government on mortgage lending, we have to have a little more of the cushion against a standard bubble. The changes included that anyone seeking a home loan with less than 20% down payment (CMHC insured) would have to are eligible 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 one could withdraw from their home for refinancing purposes from 95% to 90% of the appraised value. Regarding a market retraction this would provide a little more cushion if you are spending close to what their house is worth.
The $700,000+ debt left around the shoulders of the Vancouver taxpayers for that construction of the Olympic Village will hopefully be recouped on the next decade. According to recent reports, one local developer 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.
However, there are some challenges ahead the long run still looks very bright and promising to the Vancouver Real Estate market. Some lessons are already learned that in hindsight should help the City and Country stay away from 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.
