A great article I found at the Vancouver Condo Info site argues that it's a great time to buy real estate right now. The fact is, however, that it's been a great two years to buy in Vancouver in particular and, in the rest of the country, with prices still on the rice despite the attractive interest rate, numbers add up to favor the buyer, not the big brother.
"In the lowest 5-year rate in history, I think moments like this should be documented AND should be indicators of what our economy at large is going through." (Vancouver Condo)
I argue that not only is it a great time to buy now but it has been over the last two years. Furthermore, contrary to the following quotation of the Canadian Centre for Policy Alternatives, I maintain that it's not possible to have an "imminent" collapse when the demand for Vancouver (and Canada's) real estate is fueled by neighboring countries (China, Japan, the UK, and the US) whose real estate is either out of reach or, as is the case in the US, so devalued that investors are seeking a safer heaven for the money they've left over.
"But some experts are already scratching their heads because of the aggressive tone of the announcement as well as the timing, given the recent spate of warnings about the uncertain state of the market, including one earlier this week from the Canadian Centre for Policy alternatives predicting an imminent collapse."
And why would they care about a drop off in new customers? Ah, here it is later in the article. Could it be that banks really want to veer away from the media interpreting their interest rate changes and want to stimulate people more directly towards their products?
"The housing market is important to the banks because residential mortgages make up the single biggest asset class on their balance sheets. There are nearly $1-trillion of home loans outstanding, according to the Bank of Canada, about half of which is held by the chartered banks." (Vancouver Condo, emphasese added)
Given the vast amount of stakes the Banks have with your and my outstanding mortgages, aside from the level of our respective equity, the numbers are astounding and I can imagine the pressure they are feeling. I am not speaking sympathetically of the banks, but am drawing attention to how much money they must be making even in this seemingly disadvantageous time.
The Vancouver Condo Info site.