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Planning to buy your Dream House in Yaletown? Trust the experts!

The Present Scenario

Vancouver’s real estate market is heating up, with its recent highest annual price increase recorded at 23.4 per cent. The high real estate prices secure the finances of present-day homeowners but are frustrating for the potential first-time buyers.

According to the recent updates, the Canadian real estate crisis has jerked up parallel to the warning signs of danger. The ability to afford a house in the Canadian city of Vancouver has become a difficult process. The chief economist of Canada Mortgage and Housing Corporation (CMHC) also stated in a news release that today the cost of buying a property is higher than the level of personal disposable income and population growth.

For the first time ever CMHC, the federal agency will be issuing a “red alert” warning for the entire real estate market. The agency believes that the housing market is in need of significant price correction because the cost of homes and debts are on a continuous path of growth.

 

New Mortgage Rules – A bane for first-time buyers

The recent additions to the mortgage rules are real hindrances, particularly for the first-time home buyer. According to the new mortgage rules, a potential buyer with insured mortgages will have to go for a stress test. The stress test is to ensure the financial stability of the borrower in case the rate of interest rises. But the key positive factor in this situation is to secure house owners from taking on excessive debts. It is good news for the fence sitters, who have been waiting for real estate market to soften; now they can buy the house they always wanted too.

Though the people of Vancouver are overwhelmed by the high housing prices, the new move by British Columbia of charging an additional 15 per cent tax on foreign house buyers is highly supported by the residents, especially those in Yaletown.

cmhc-new-10-down-payment-chart2

Yaletown – Still a Ray of Hope for younger Vancouverites

Yaletown is a stylish, historical region of Vancouver, BC. It has a sophisticated and cosmopolitan ambiance that makes it an attractive place to buy a new house. But the housing in Vancouver, BC is out of control. The hike in real estate costs is majorly affecting the young people of the city. For the young natives of Yaletown, housing has become a luxury item and the government is taking a lot of time in arbitrating this crisis.

The contemporary scene of the housing market is frustrating for an average Vancouverite. The young natives in the city have to save more than past times for even a 20 per cent down payment. They are trying to squeeze themselves into the place where they were born and had invested in for so long.

According to Paul Kershaw, founder of Generation Squeeze, the Vancouver’s housing crisis has hit “code red.” The city might lose its people belonging to the younger generation who are the real assets.

Despite the dire situation, many experts believe that the real estate market in Yaletown and the rest of Vancouver will retain its healthy status in the near future. Expert economists in BC have cohesively predicted the same. This poses as a promising situation for youngsters who don’t have to save a lot to invest in a house.

 

Lifestyle Audits by CRA

The skyrocketing real estate market of Vancouver has highlighted individuals who have a luxurious lifestyle and an expensive house, but their earnings are of average category. The Canada Revenue Agency plans to investigate into the matter and their key area of inquiry would be “lifestyle audits.”

Lifestyle audits will include the examination of highly-priced homes, expensive cars, and assets, which will be compared to the income reported on tax returns. The audit will confront the culprits and with a committed execution, the resulting state of Vancouver’s real estate will bring back the brighter days of the city’s housing market.

In the current risky conditions, buying a house or any other property should be dealt with great care. At Yaletown Condo Listing, we customize a plan to meet and exceed our client’s needs. Get in touch with our realtors Tanya Jakubec when planning to buy a new house in Yaletown.

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Yaletown, Vancouver – A Real Estate Prospect Despite Current Situation

2016 – A Year of Ups & Downs for Vancouver Real Estate

At the start of 2016, Metro Vancouver had been a real estate Eldorado, witnessing record-smashing numbers in housing sales and listings. With every passing month since early spring, housing numbers continued the trend of dwarfing the preceding months’ and years’ records. Yaletown was no exception to this, being one of Metro Vancouver’s most desired locations to live in.

A significant contribution to this trend in Metro Vancouver was the investment by foreign buyers, both businessmen and immigrants, in one of Canada’s fastest-growing metros. 2016, particularly, saw a huge surge in the number of foreigners that were migrating to the city. The Metro Vancouver real estate was booming and was at its peak. But so were the prices of listings. Housing rates were at its all-time highest, and it was beginning to concern the city’s officials.

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There’s been an increase in unit listed (supply) and huge drop on the unit sold (demand). This gives a strong signal of buyer’s market. Source: Real Estate Board of Greater Vancouver

In August of this year, the City of Vancouver passed a new tax law on foreigners who wanted to buy into the city’s real estate market. The Foreign Buyers’ Tax was a 15 percent levy that was introduced to thwart off the increasing number of foreign buyers who were significantly responsible for the massive housing rates in Vancouver.

What followed was entirely unprecedented. As expected, the number of sales naturally dropped down drastically in the same month that the levy was implemented. But, in a surprising turn of events, the average housing rates did not budge at all. In fact, many areas including Yaletown, saw housing prices go up despite the fact that there was a lower demand.

The worrying situation failed to improve as September came around. The conditions reflected on a report released by UBS Switzerland on September 27th, declaring Metro Vancouver as the “World’s Highest Bubble Risk.”

Despite these rough waves that have been hitting Vancouver recently, many experts believe that Vancouver’s real estate will continue to remain healthy. A forecast by Central 1 Credit Union predicts B.C.’s hot real estate market will remain healthy for the next two years. Senior economist, Brian Yu believes that slower growth is healthier for the market because sky-rocketing Greater Vancouver prices seen during what he described as “spring fever” were unsustainable, in the early part of 2016.

A Healthier Future for Yaletown

At the hub of Metro Vancouver’s Downtown area, and situated in one of its prime locations, is Yaletown. Its distinct location makes Yaletown one of the most desirable places to live in the city. This automatically results in a higher demand for housing, and ultimately, makes the area one of Vancouver’s most expensive.

Given the recent fluctuating situation and rough sailing real estate boat of Metro Vancouver, Yaletown has been at the thick and thin of it all. With every crest and trough that the city has undergone, it has been directly reflected on Yaletown too.

As the number of listings continues to stack up, the number of housing sales has failed to show any signs of picking up pace anytime soon. Despite this, the rates of listings have not eased. On the contrary, it has gone up over the past couple of months.

Average housing prices currently, at an average, stands at $1,538,349, including detached and attached homes, and apartments. The highest price stands at over a staggering $8 million.

Despite all the inflation within Yaletown’s property prices, Yu’s prediction indicates a promising and healthy future for Yaletown. The popularity of the prime Vancouver region is expected to remain positive.

Dealing with the housing prices in Yaletown can be tricky but promising. Yaletown Condo Listing can help guide you if you want to buy a house in Yaletown, Vancouver.

Home Price Index for Greater Vancouver, Sep 2016 – Detached Home

Area Benchmark Price Index 1 Month +/- 6 Month +/- 1 Year +/- 3 Year +/- 5 Year +/-
Greater Vancouver $1,567,500 289.1 -0.6 16.8 32.7 69.5 66.3
Bowen Island $796,500 172.7 -0.2 21.9 23.8 38.0 31.9
Burnaby East $1,228,500 274.7 -2.6 12.4 29.7 64.5 70.8
Burnaby North $1,564,700 302.6 -2.0 15.1 29.2 66.3 72.3
Burnaby South $1,689,400 323.4 -0.6 21.1 36.5 73.9 75.0
Coquitlam $1,210,600 268.6 -1.5 15.7 34.2 71.7 75.9
Ladner $1,064,800 256.7 3.3 16.2 36.0 70.6 69.9
Lower Mainland $1,252,800 266.1 -0.9 17.1 33.9 65.2 65.2
Maple Ridge $717,400 204.4 0.7 19.1 36.5 55.8 55.1
New Westminster $1,086,000 269.4 -1.6 14.2 31.0 63.8 64.5
North Vancouver $1,663,500 264.8 -1.6 16.9 37.2 74.1 81.7
Pitt Meadows $793,200 223.5 1.2 19.8 34.9 56.7 62.2
Port Coquitlam $888,500 237.0 -2.1 10.4 27.8 61.8 61.7
Port Moody $1,381,900 255.2 -0.9 14.1 30.9 62.3 70.5
Richmond $1,684,800 337.9 -1.1 19.2 39.2 79.5 66.9
Squamish $788,300 209.6 -1.5 19.7 29.1 59.0 58.9
Sunshine Coast $479,800 168.1 0.9 16.7 25.4 40.8 26.4
Tsawwassen $1,269,700 273.4 1.8 14.3 36.6 77.8 78.2
Vancouver East $1,537,300 339.8 0.2 19.3 32.4 80.9 86.8
Vancouver West $3,623,300 372.0 0.2 17.9 32.1 73.2 62.0
West Vancouver $3,361,600 319.6 0.1 20.1 36.4 81.0 89.1
Whistler $1,301,800 180.2 -1.6 15.5 22.5 48.3 38.6