The Vancouver real estate market has received an expensive reputation as of late because prices have risen 18% since 2014, but that doesn’t mean the market isn’t booming. This last year was the Greater Vancouver Real Estate board’s second-highest November on record, with residential sales up 46 per cent above the 10-year average. There was a total of 57, 249 annual new listings on the market and 42, 326 of those properties were sold.
Even though prices have risen in Vancouver, it still begs the question of why average income families, among others, are buying and should continue to buy.
- Low Interests Rates: because of the current economic state interest rates are low, and buyers should use it to their advantage. These are some of the lowest mortgage rates in Canada. This is an ample time for apply for a mortgage, get a renewal on your loan, or think about refinancing. This applies to everybody from immigrants to students.
2. Sellers strongly benefited: Sellers in the last year got more than their asking price and bidding wars were a common faculty because inventory is low and the demand is so high. Every time there is a multiple offer listing there is one person or people that receive the house and there’s nine others that do not, on a typical 10 offer ratio. While this may appear to be a negative, home buyers are still out there searching for their dream home, investing in there future. Which leads me to the next point.
3. Buyers are investing in their future: Buyers are paying off their own mortgages, instead of renting and paying off someone else’s mortgage. By paying off your mortgage you are setting yourself up for your future. In the coming years when you pay off your home, you will eventually live mortgage free when its all paid. Instead of paying rent for the rest of your life.
4. Another reason that the market is booming is because of suites, lane way houses, and rooms for sale. Owners can rent out parts of their home to students from other countries needing a place to stay for the duration of their education or students in their own backyard. When you rent out various parts of your home your creating income for yourself that will help pay off your own mortgage and eventually when it is paid off you’ll have some extra cash. This is Vancouver, a place that people want to live even if its only for winter season to ski on the mountains or during the summer to lounge on the beach. Its an attractive place to stay so you will always have people needing somewhere to rest their head.
All in all the Great Vancouver Area is yes, an expensive place to buy, but the market speaks for itself, people are purchasing.
Hopefully your one of them.
M
Maria Menjou | Honesty is My Priority 