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The financial crash of our neighbors to the south has had a minor impact on the strength of the Vancouver Real Estate market. The banking system in Canada is much more guarded and has allowed Canada to sneak right past with very little impact. here lies the question: Since the Olympics are over in Vancouver, should we watch for the expected financial hangover? Many people believe that we could not be on the verge of a meltdown since Vancouver has a very strong Real Estate market and this combined with the historically low rates in mortgages should surly be enough to sustain us. Because of the low volume of properties for sale, buyers are finding themselves paying much over the listing prices. Some properties are sold for ten, twenty and even up to two hundred thousand dollars over the listing price. While the largest increase in sale price occurs in the much desired neighborhoods and for a select number of properties, it really does happen. It is possible to have a bubble in the market but it will surely not be a large one. It appears like the micro-markets that are found in Vancouver Real Estate have gotten ahead of themselves and are in the most danger of a bubble effect. Townhouse and condo markets have been on a steady increase in the last year so this market should remain stable. The 1st time buyers are typically the people that are investing in these homes due to the lower rates in loans that are available. The Canadian Government has made some changes in the mortgage lending practices so that there is more protection in the chance that a bubble does occur. One of the changes that have been made includes requiring anyone that is not able to put twenty percent down on their property purchase (CMHC insured) will have to meet the same qualifications that are necessary for those to obtain a five year loan for the property, no matter how long the term will actually be. A change was also made to the amount that someone can withdraw from their equity to refinance. It was lowered from 95% to 90% of the value of the property. If a collapse was to happen in the market, there would be a thicker cushion available to protect those that have spent nearly the entire amount that their property is worth. Vancouver taxpayers have been left with over $700,000 in debt after the construction of the Olympic Village and it is expected to be paid off over the next decade. There is one local developer, according to reports, that has made $31.8 million from the high end units that were rented to people during the two weeks of the Olympics. There are about 1100 units in the village of which are for various different income levels and include amenities common to a typical community like parks, shopping, and services. The Vancouver Real Estate market does have challenges in its path but the future does still look promising and bright. There have been some very valuable lessons learned by the Country and the City because of the mess that the United States has gotten into. This does not remove the threat of some smaller pockets of bubbles because ignorance has put people into a frenzy of making purchases and has pushed the prices into unbelievable ranges. Looking at it on a more broad level, the city's real estate market will make slow growth as 2010 continues and will take on a more moderate increase as 2011 moves through.
Article Source: http://www.onlinearticlessite.com
Once a Vancouver Realtor, Brian Taylor still follows the Real Estate market closely.
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