Author: Julian Hart
Considerations for Buying
So where does that leave you if you want to buy a home in the Vancouver market? There is no predicting how the market will fluctuate on a day-to-day basis, but the signs indicate a modest and short-lived slow down. You can always choose to wait, and the reasons for doing so are both many and well-founded. Ultimately, the sooner you get in, the sooner you will own more of your home. If that is the path you choose to take, be conscientious of these important considerations: click here for more details.
- Aim for what you can afford. Be realistic about what monthly payments you can afford to determine your price range. Visit your bank or qualified mortgage broker to get an accurate assessment of your finances. If projected payments are close to what you currently pay for rent or existing payments, then you can probably afford the mortgage. Consider what you may be paying if rates go up and be conservative about projecting your income.
- Think carefully about the kind of mortgage you will take out. Will it be a floating rate or some species of fixed-term mortgage?
To Buy or not to Buy?
Is now a good time to get into Vancouver’s real estate market? This is the perennial question. People who watch regional trends see conflicting messages. The Real Estate Board of Greater Vancouver (REBGV) suggests that Vancouver is in a buyer’s market while the Canadian Centre for Policy Alternatives (CCPA) argues we are in a housing bubble. With property sales slowing, lending rates increasing and housing prices historically high, the question of whether or when to purchase a home burns even stronger. The dilemma on many potential buyers’ minds: buy now and risk a significant drop in home values paired with an increase in interest rates, or wait and risk watching prices climb out of reach.
Signs of a Buyer’s Market
The real estate market has gradually softened since the April 2010 climax and, though prices have declined slightly since that month’s record-setting benchmark of $593,419, at $539,600 they are still relatively high when seen from a long-term historical perspective. In fact, the period from March 2009 to April 2010 was one of the highest selling periods in Vancouver Real estate, so within that context, a decline in prices is a normal fluctuation, and a trend toward the baseline.
Factors Suggest Slowed Inflation
Current mortgage rates are unprecedentedly low. Bank of Montreal recently decreased its popular special five-year fixed rate to 3.59%. Meanwhile, the Bank of Canada (BOC) has incrementally ramped up its trendsetting overnight lending rate, taking advantage of GDP growth in order to slow borrowing. It was raised from 0.75% to 1 % on September 8th, the third time in four months. This has caused the Big 6 banks to increase their variable rates a point to 3%. The increased rate, along with the activation of the HST is slowing purchasing activity. The increases are small enough that they will not cause unbearable stress on most borrowers, but they will create more caution amongst buyers, which will slow inflation. This is good. for further info, visit : https://real-estate.wharton.upenn.edu/
A dramatic price correction in the Greater Vancouver real estate market is unlikely to occur. It is one of the world’s most desirable places to live and geographical factors limit massive development, typically causing properties to grow or keep their value. Other factors currently keeping home values stable are continued foreign interest and a slowing new housing stock into the market.
Since the real estate market crash in 2008, it’s been a somewhat rocky road for the real estate industry in Canada, but how rocky that road is depends on where you’re living. The Vancouver market has really done quite well to recover, taking only around two years to bounce back to the all-time highs that were experienced just prior to the crash, and now average home prices are hovering around that level. So, what is the current outlook for the Vancouver market?
Vancouver Real estate experts are expecting to see modest increases in home prices and with it being a hotter market that is likely to happen. As sellers hold on to their real estate for the right buyer and as buyers are desperate for any property that has actual solid land underneath it, detach home prices are skyrocketing. Condos and exclusive one level apartments will always be in demand in Vancouver, but the biggest increase can clearly be seen in the surrounding neighborhood of Vancouver’s most expensive locations. click here for related info.
The current rate of SOLD homes in Vancouver has stayed right around 14% and expected to stay there for the duration of the year. In a market that has always been hot 14% is still a decent number for investors and sellers. It looks as though 2014 will bring a stable market to the doorsteps of both buyers and sellers and this will have a direct impact on how Vancouver’s real estate market will grow in the coming years. New growth, less off shore investors, and more locally owned homes is good thing for the city and will have a positive impact on residents throughout Vancouver.
The new numbers for Vancouver’s 2014 Real Estate market are just now coming out. January was a solid month for growth with numbers staying around the same as the high mark of 2013. However, experts are expecting to see more growth as the months roll by in 2014. According to Vancouvermarketreports.com markets are currently 12% less than the same period in 2013, but this does not mean a slide in the housing market is taking place. In fact, the numbers of last year were greatly influenced by a spike in new buildings and detached home sales (numbers which do not fluctuate as much as other real estate prices). This year, sales of condos and new projects are expected to be the main push for real estate.
Of course, it is not just the amount of home prices that are fluctuating, so are the type of buyers Vancouver is enticing. According to experts, the buyer profile for Vancouver has shifted dramatically away from off shore buyers and towards local residents. It seems as though individuals from neighboring cities and states are taking an invested interest into moving to British Columbia’s most expensive city. Although the market is hot for sellers, buyers are still more interested than ever to receive their piece of prime Vancouver real estate and it seems as though no price is too much.
In a seller’s market, home buyers are desperate to find the right home in right price. You really need Vancouver Realtor help.
Anyone living in Vancouver knows that all real estate market is very different from any other Canadian city. The desire for everything new and innovative makes our local architecture and our real estate trends very distinctive. However, if you’re planning to purchase property in Vancouver, get a Vancouver real estate agent and you have to be aware of local trends in order to make a smart purchase. Here are some of the trends that define Vancouver real estate today. click here for more details.
Out with the Old, in with the New
Because Vancouver is a newer city, there is less of an appreciation for heritage residences. Almost every day, newspapers advertise the demolition of older buildings in favor of new condos. This trend is only getting bigger and bigger in Vancouver. If you plan to live in Vancouver, it will be very hard to find older apartment buildings, which generally have larger spaces and more affordable prices. Instead, you will probably be looking at newly developed condos with less room and higher price tags.
Be Prepared to Pay
Most other Canadian cities have neighborhoods and regions that vary in price. For example, you can choose between more expensive areas and more affordable ones. While this trend does exist in Vancouver, the general price point is decidedly higher. A “cheap” residence usually costs around $1 million dollars and often you are paying more for the land than the house itself. And supposedly that time, the run-down places such as Main Street and Commercial Drive are now expensive just like the upper class level neighborhoods in nearby cities. So, if you want to live in Vancouver, invest in Vancouver and be prepared to pay.
Longer Waits for Houses
Normally, a family will have to go through one or two “starter” homes before they can afford their ideal house. Due to high prices, Vancouver residents usually have to go through two to three apartments and then another two houses before they can upgrade to their dream home. This is just a reality for a city that has higher than average property prices.
The Suburbs are the New Hotspot
Because Vancouver has become very un affordable, many young people and new families are choosing to live in the surrounding areas of Richmond, Burnaby, New Westminster, and Surrey. This large influx of young individuals is turning the suburbs into trendy and hot areas. Businesses are becoming younger and hipper in order to accommodate these new residents. This means that the suburbs, which are usually considered a real estate consolation prize, are fast becoming the hottest places to live.
There is no doubt that Vancouver is one of the best places to live. However, residents have to be prepared before purchasing a home. Get to know the city and the local Vancouver real estate trends before investing in anything. You’ll be grateful in the long run.
It’s always best to keep up and understand the market you’re looking to invest in. If you’re interesting in buying a home or the perfect townhouse, I urge you to contact one of my good friends and Vancouver real estate expert – Mr. Sharp!