Home Prices Expected To Remain Stable Due To Strong Demand

Jeff Evans

With all the doom and gloom I have been hearing over the last few months about housing prices going down and there being a bubble in the Vancouver housing market, I have stated on a number of occasions that while the market may be a bit quiet currently, it is normal for the summer months to be quieter, and it is compounded by the fact that the market is adjusting to the mortgage rule changes from the beginning of July. It is also a pattern that I have noticed that in the past 4 years, whenever the government has instituted tighter lending rules, that the market goes quieter for a period of 2-3 months before adjusting and returning to “normal” for lack of a better term.

With this in mind, a senior economist at CIBC has stated similarly that demand for housing will remain stable due to strong demand. You can see the story here. CMHC also corroborates this opinion in the article here.

I am not going to say that someone buying a family home is going to become independently wealthy based on a year’s appreciation in their property value, but to say it is a bad time to buy a home would not be accurate. Especially in Vancouver, the population continues to grow and there is a finite amount of land available to build on. There are no farmers fields in Vancouver to develop, and water, mountains and international borders impede further land to develop upon. If you currently work in Vancouver, a move to the eastern part of Langley or further would be difficult for the commute.

Author: Jeff Evans

I am a mortgage broker, hair salon owner, squash player, student, and husband, aspiring to do good for people.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Articles

mortgage broker Vancouver BC
Good news regarding OSFI rule changes
Jeff Evans
No Comments

This is just a quick note to let viewers know that IF you are one of the people with 20% or more down-payment and are in a position that the new OSFI rule changes affect your pre-qualification, that I can extend the current guidelines into the new year by up to 120 days provided that I have an application and am able to get a pre-approval in place with a lender for you before January 1.Read More

OSFI B20 mortgage guideline changes 2017 – Part 2
Jeff Evans
No Comments

This is a continuation of the article published here about the OSFI B20 morgage guidline changes for 2017.

If you are familiar with mortgage brokers at all (which you probably aren't) you would know that we also have alternative sources of lending for situations where a mortgage borrower will not qualify with a prime institution.  We have what we call "B" lenders, who have higher rates but more flexible lending criteria, and we have private lenders, which are individuals and corporations who can lend money on on anything that suits them.Read More

OSFI B20 mortgage guideline changes 2017 – Part 1
Jeff Evans
1 Comment

B20?  Is that some kind of vitamin?

It certainly sounds like a vitamin, but unfortunately, it is something else altogether.  The Office of the Superintendent of Financial Institutions is the regulator for all federal mortgage lending institutions.  They set the regulations for mortgage companies like banks to follow (or ignore).

The latest updates to the B20 mortgage regulations could bring some potentially very disrupting changes to the real estate market, especially if you are wanting to get a mortgage in Vancouver, or you are a mortgage broker in Vancouver. In summary:Read More