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.
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.