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Vancouver Real Estate
Vancouver Real Estate market has remained strong in spite of the meltdown of our neighbours south. Thanks to a more closely guarded banking system, Canada continues to be able to slide with the mess relatively unscathed. Now you ask ,: now that the Olympics games are gone for Vancouver, will as well as anticipated financial hangover begin?
While using current strength within the Vancouver Real Estate market matched with historically low mortgage rates to go with it, one could say "how could we often 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 in many cases even $200,000 over market price. Although the latter is good for a specific product in the couple of choice neighbourhoods nevertheless has happened. The potential for a bubble is definitely there but not over a broad scale. It seems more like the micro-markets of Vancouver Real-estate that are getting too much ahead of themselves are at the most risk for a bubble.
The Vancouver condo and townhouse market has seen growth in the last year at a pace which includes all the right conditions to keep sustainable. 1st-time buyers are likely to be the demographic in this category and are enjoying the low mortgage rates. Using the recent changes imposed from the Canadian Government on mortgage lending, we ought to have a little more of a 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 met the criteria of a 5 year fixed interest rate 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% from the appraised value. When it comes to a market retraction this would offer a little more cushion if you are spending close to what their home is worth.
The $700,000+ debt left about the shoulders of the Vancouver taxpayers for that construction of the Olympic Village will hopefully be recouped within the next decade. Based on recent reports, one local developer surely could cash in on $31.8 million in high-end units from people visiting for the 2 week Olympic period. The village will house approximately 1100 units of mixed income households in the sustainable community of shopping, services and parks.
Though there are some challenges ahead the future still looks very bright and promising for that Vancouver Real Estate market. Some lessons are actually learned that in hindsight should assist the City and Country avoid 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.