Vancouver Real Estate
Vancouver Real Estate
The Vancouver Real Estate market has remained strong despite the meltdown of our neighbours to the south. Thanks to a more closely guarded banking system, Canada has been able to slide through the mess relatively unscathed. The question is: now that the Olympics games are over for Vancouver, will the much anticipated financial hangover begin?
Vancouver Real Estate
With the current strength in the Vancouver Real Estate market matched with historically low mortgage rates to go with it, one would say "how could we possibly be headed for a meltdown"? Current inventory is low which is again sending Real Estate 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 for a specific product in a couple of choice neighbourhoods it still has happened. The potential for a bubble is definitely there but not on a broad scale. It looks more like the micro-markets of Vancouver Real Estate 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 over the past year at a pace that has all the right conditions to stay sustainable. 1st-time buyers are generally the demographic in this category and are taking advantage of the low mortgage rates. With the recent changes imposed by the Canadian Government on mortgage lending, we should have a little more of a cushion against an overall bubble. The changes included that anyone seeking a mortgage with less than 20% down payment (CMHC insured) would have to meet the requirements of a 5 year fixed rate mortgage regardless of the term they were seeking. Another safeguard was to lower the amount of equity one could withdraw from their home for refinancing purposes from 95% to 90% of the appraised value. In the case of a market retraction this would give a little more cushion for those who are spending close to what their home is worth.
The $700,000+ debt left on 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 for the 2 week Olympic period. The village will house approximately 1100 units of mixed income households in a sustainable community of shopping, services and parks.
Vancouver Real Estate