Home > Uncategorized > Real Estate Market Update in Canada & What is happening in Vancouver market

Real Estate Market Update in Canada & What is happening in Vancouver market


 

Please click Podcast listen to Cantonese interview

Based on one recent report by the Teranet-National Bank Composite House Price Index on Canada 6 major metropolitan areas Toronto, Montreal, Ottawa, Halifax, Calgary & Vancouver. It was the 1st time in 10 months that prices rose in all 6 cities.  Analysts said the higher prices shown in the past few surveys were fuelled by a rush to buy before stricter mortgage rules came into effect in the spring, therefore, it should not be a lasting trend.  The pro-Spring market is being fuelled by both local home owner buyers as well as both local & foreign investors

Numerous reports concluded the Vancouver housing market is driven by Mainland China immigrants.  Since July 1st, immigration law has changed.  Investor program limited to 700 people. Skilled worker 500 per profession.  However, Montreal investors program is going to increase the number of applicants.  I strongly believe this new policy doesn’t reduce the current number of immigrants coming to Canada.  It is simply for the purpose of easing off the backlog cases. I’m not surprised the immigration department will relax the policy once again when the circumstances improved. 

Some Economists predict Vancouver housing price is going drop 25% due to the new immigration policy, other Economists disagreed.  A sharp and brisk tightening cycle is unlikely. There are two reasons trigger for a price crash, quick increases in interest rates and a high-risk mortgage market sensitive to changes, they are both not in play. Even in the weakest segment of the mortgage industry

Households with both low equity positions and high debt-service ratios only account 4.6% of the total.

“Shock the system with a 300-basis point rate hike and that number would rise to a still-tempered 6.5%!”  Historically, even in that group, the default rate has been well below 1%. Short of a huge macro shock, there does not appear to be the risk of large scale forced selling that would typically be the trigger for a precipitous plunge in the national average house price.”

Vancouver housing market is a very unique market.  There is no one theory can analysis our market.  All I recommend is we should all empower knowledge to make sensible decision.  This is how I educate my buyers.  I always have a meeting with them, analysis the market for them, listen to what they want then make appropriate recommendation.  IF you or your sphere of influence want to understand the market in regards to where to invest, make an appointment with me at tinamak@tinamak.com or 604-412-5860 & let me taylor made an investment program that is suitable to you personally. 

 

Tina Mak Personal Real Estate Corporation

Vancouver Radio Realtor AM1320

The Bridge from East to West since 1992

http://www.TinaMak.com

http://www.TinaMak.ca 温哥华中文地產綱站

http://www.GenYrealestate.ca

604-412-5860 

 

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