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Vancouver Real Estate

Vancouver Real Estate market has stayed strong in spite of the meltdown of our neighbours to florida. Thanks to a more closely guarded banking system, Canada has been able to slide over the mess relatively unscathed. Now you ask: now that the Olympics games have ended for Vancouver, will the much anticipated financial hangover begin?

With all the current strength within the 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 is again sending Property transactions into multiple offer situations with buyers paying $10,000, $20,000 and even even $200,000 over list price. Although the latter is made for a specific product inside a couple of choice neighbourhoods nevertheless has happened. The chance of a bubble is definitely there but not on the broad scale. It looks more like the micro-markets of Vancouver Real Estate that are getting 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 has all the right conditions to stay sustainable. 1st-time buyers are likely to be the demographic within this category and are taking advantage of the low mortgage rates. With all the recent changes imposed through 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 home financing with less than 20% downpayment (CMHC insured) would have to met the criteria of a 5 year set rate mortgage regardless of the term they were seeking. Another safeguard ended up being to lower the amount of equity you are able to withdraw from their home for refinancing purposes from 95% to 90% of the appraised value. In the matter of a market retraction this would give a little more cushion if you are spending close to what their home is worth.

The $700,000+ debt left on the shoulders of the Vancouver taxpayers for that construction of the Olympic Village will hopefully be recouped within the next decade. As outlined by 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 in the sustainable community of shopping, services and parks.

Although there are some challenges ahead the longer term still looks very bright and promising for that 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. You will have, although, pockets of bubbles where ignorance is driving people into frenzied buying and driving prices to unsustainable levels.

Vancouver Real Estate