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Vancouver Real Estate

Vancouver Real Estate market has remained strong despite 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. Absolutely suit: now that the Olympics games have ended for Vancouver, will the much anticipated financial hangover begin?

While using current strength inside Vancouver Real Estate market matched with historically low mortgage rates to go with it, you might say "how could we possibly be headed for a meltdown"? Current inventory is low which can be 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 list price. Although the latter is made for a specific product in the couple of choice neighbourhoods still it has happened. The potential for a bubble is certainly there but not on a broad scale. It looks more like the micro-markets of Vancouver Real estate property that are getting too far 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 with the Canadian Government on mortgage lending, we need to have a little more of the cushion against an overall bubble. The changes included that anyone seeking a mortgage with less than 20% down payment (CMHC insured) would have to qualify of a 5 year fixed rate mortgage regardless of the term they were seeking. Another safeguard ended up being to lower the amount of equity you can withdraw from their home for refinancing purposes from 95% to 90% of the appraised value. When it comes to a market retraction this would give a little more cushion if you are spending close to what their house is worth.

The $700,000+ debt left about the shoulders of the Vancouver taxpayers for the construction of the Olympic Village will hopefully be recouped over the next decade. According to recent reports, one local developer was able to cash in on $31.8 million in high-end units from people visiting to 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 your 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. There'll be, although, pockets of bubbles where ignorance is driving people into frenzied buying and driving prices to unsustainable levels.

Vancouver Real Estate