The market is brightening up!
First National – Erica Ma
Nov 8, 2012 – 12:07:38 PM
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 Homelife Abbotsford/Mission 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 Abbotsford BC or Mission BC 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.
Homelife Realty – Higher Standard, Higher Results.
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300 – 3303 Immel St.
Abbotsford BC V2X 5Y1
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Mission BC V2V 6G3
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