WillaminaMcdonald900
Vancouver Real Estate
Vancouver Real Estate market has remained strong inspite of the meltdown of our neighbours south. Thanks to a more closely guarded banking system, Canada has become 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?
With all the current strength inside Vancouver Real Estate market matched with historically low mortgage rates to go with it, one could say "how could we possibly be headed for a meltdown"? Current inventory is low that's again sending Real-estate 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 of a bubble is definitely there but not on a broad scale. It looks more like the micro-markets of Vancouver Property that are getting past an acceptable limit ahead of themselves are at the most risk for a bubble.
The Vancouver condo and townhouse market has seen growth during the last year at a pace that has all the right conditions to remain sustainable. 1st-time buyers are usually the demographic with this category and are taking advantage of the low mortgage rates. Using the recent changes imposed by the Canadian Government on mortgage lending, we have to have a little more of the cushion against a total bubble. The changes included that anyone seeking home financing with less than 20% downpayment (CMHC insured) would have to qualify of a 5 year fixed rate mortgage regardless of the term these were seeking. Another safeguard was to lower the amount of equity you can withdraw from their home for refinancing purposes from 95% to 90% in the appraised value. In the matter of a market retraction this would provide a little more cushion if you're spending close to what their property is worth.
The $700,000+ debt left for the shoulders of the Vancouver taxpayers for your construction of the Olympic Village will hopefully be recouped within the next decade. According to recent reports, one local developer might 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 have been learned that in hindsight should help 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.
