While Canadian banks are tightening their lending belts and a correction in the market is predicted for the country, many realtors Vancouver are suggesting Vancouver will not see much if any of a correction.
Experts agree that Vancouver isn’t likely to face a severe correction from the market. Homes for sale Vancouver and condos for sale Vancouver are predicted to remain fairly stable in price.
While Canada’s banks are gearing up for a possible correction and are in talks with the government about ways to avoid any major problems, the Vancouver market does not seem to be at risk say economists.
The concern over the housing market comes in part from the level of household debt facing the country. Consumer debt is at record levels and many households are really feeling the stretch. ]
According to experts in the matter, household debt numbers are getting as high as the US levels. This is a very grave concern for many.
Some banks have therefore issues stricter lending policies and are raising prices on riskier borrowers.
TD Bank for instance stopped a promotional 2.99 percent mortgage rate weeks before the rate was expected to expire.
Realtors Vancouver say however that this is not likely to make any major impact on the market in Vancouver.
The government has already imposed some regulations in order to control the lending, but they are loathe to go to far. Interest rates are still very low.
The Vancouver market has seen record price levels. A home for sale Vancouver or a condo for sale Vancouver that went for about $500,000 back in 2001 would have cost 1.2 million by 2011.
While prices have dropped very slightly in the Vancouver market, it remains to be seen just how much of an effect any correction will actually have in this area.