The doom and gloom that has been hanging over the Fraser Valley/Vancouver housing market is brightening a little according to my friends at First National Financial, a business partner of ours at Canadian 1st on our mortgage side of things.
Make no mistake, the market is slowing and prices are softening – which is exactly what the federal government wants – but the dark and foreboding headlines have received a little sunshine.
Canada Mortgage and Housing Corporation’s latest quarterly report forecasts increasing housing starts, increasing re-sales and increasing prices over the next year. Certainly the pace of those increases is slowing, but it’s a long way from a bursting bubble.
Further, a couple of well known Canadian economists say there’s no need to fear a U.S.-style meltdown.
Among their key points: – While the debt-to-income ratio is at a record high (163%) the rate of increase is slowing; Canadians aren’t loading up on debt the way Americans did before the crash. As well, debt relative to assets is below peak levels in Canada. – Canadian mortgages are higher quality; borrowers have better credit scores and they have more equity in their homes. – Canadian home buyers are insulating themselves against inevitable interest rate hikes by taking out fixed rate mortgages, the opposite of what happened in the U.S.
If you are thinking about buying in Maple Ridge anytime soon our market report show it is a strong buyers market and the combo of low rates and soft prices will give you a nice return in 5 to 10 years compared to most times in real estate history.
Canadian 1st Realty – Canada’s Real Estate Company.
C 604 897 2741
O 604 466 5077
F 877 826 2621
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200-11830 223rd St.
Maple Ridge BC V2X 5Y1
1 – 32540 Logan Ave
Mission BC V2V 6G3
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