Metro Vancouver Bubble !
Billie Mesiano, Mortgage Specialist I had the opportunity to sit in on a Real Estate conference put on by MacDonald Realty at Vancouver’s new Trade & Convention Centre downtown yesterday (wow is it ever gorgeous ~ inside & out!).
I learned a lot from some amazing experts & thought some of this info might be of interest to you, especially if you're a potential 1st time buyer or have been out of the market a while: Unless you now have over 20% for a down pmt, rents are cheaper in Metro Van (includes all municipalities from West Van to Langley).
Prices are being driven higher do to thousands of people per year immigrating to BC. There are over 250,000 new immigrants coming into Canada each year, with almost 20% coming to settle in BC. The majority of them settle in Metro Vancouver (again this covers 24 authorities/municipalities ~ the majority of the lower mainland).
Our current home prices are not supported by our average household incomes (we are still the least affordable region in Canada!) but because there is still such a great demand by foreign investors and migration, our market prices remain extremely high. With thousands of new people coming to live here each year, the demand for homes is strong... and that's what keeps our market so high.
Average incomes needed in North Van is now $180k for a single family home and $105k for townhouse. In White Rock/S Surrey it's $165k and $85k. I'll see if I can find the link which provides more details about this...
Economists from BMO, UBC's Sauder School of business and CMHC as well as MacDonald Realty’s inspiring lead Lynn Hsu, all predict about 40,000 new people will move to BC in 2011 and prices will continue to rise modestly. New home construction will increase as well to keep up with demand, but of 100% in Metro Vancouver, the majority will be "south of the Fraser" (Langley/Surrey, etc) where there is land available for development (vs. redevelopment like in the city, which is much more pricey).
Bank of Canada didn't raise Prime rate today, (and probably won't for the next several months) so the current variable interest rate for a mortgage sits at about 2.5% (Prime -.5%) or lower. That's good news! Interest rates are still at a record low and the economists predict these rates to remain low for the next couple of years.
Other panel members were from Metro Van and Bosa Development- they had super interesting things to say, especially about the expansion, growth & development of our region until 2040... Check out the plan and get involved if you’d like to have your say: http://www.metrovancouver.org/Pages/default.aspx
So basically what’s the overall message I got from this? DON'’T WAIT to enter the market, because each day you hesitate; the greater the gap will be between income and home price. We live in a vibrant, growing, high-demand region (but we all know that already!)… and things are only going to get better.
Hope this info is helpful to you or those in your circle :) If you have any questions or want more information, let me know! And if you know anyone who would benefit from my services or just needs a second opinion, please let them know about me – your support is greatly appreciated!!!
Contact Billie @ Cell: 604.910.0443
This entry was posted on October 20th, 2010
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