Vancouver Water Front Condos See Drop in Values

Vancouver Water Front Condos See Drop in Values

Vancouver's real estate market might be hitting the brakes a bit too late. The Canadian government restructuring of the mortgage laws are playing the lead role in this play. These laws have tampered with the volatile housing prices; the concern is a destabilization in the cash flow among Vancouver homebuyers and sellers. The real estate market has recovered nicely from the recession but the introduction of these mortgage laws will cause a heavy fluctuation in most markets. Why would the government introduce these changes to the market, with the prosperity factor not at its peak? The government wants to place a braking pressure on the accelerating debt in the average home. The second reasoning is place a foothold into the real estate avenue with the purpose to "bank" the higher down payments in case of a future cash freeze.

The hardest hit properties in the Vancouver region belong to the Vancouver waterfront properties. The prices are dropping in the surrounding real estate regions for luxury properties. The remarkable bounce back from the economic recession has caused the Canadian real estate market to skyrocket but with the mortgage restructure, most Canadians will likely look elsewhere for new homes. Even with the economic hiccups, the real estate venue has enjoyed steady increase in house prices. The worse factor is slowly coming into play is the wealthier residents are looking down south for recreational properties to purchase.

Several real estate agencies are experiencing the direct affect of the mortgage cap. They have seen houses drop from $2 million to little over $600,000 in the final sale. Other properties in Vancouver have dropped from $1 million to $750,000 and the property is still on the list for sale. These realtors are reporting continued sales but they have slow downed for the moment. The higher priced properties ($1 million or more) are suffering from the declining sales. There are some homes on the Canadian real estate markets that are at least two years old, some owners refuse to drop their price.

What does the current hiccup mean to Vancouver homebuyers and foreign investors? The new laws will only affect new buyers after the deadline; the buyers will have to beat the deadline in order to be grandfathered in under the old laws. Once the deadline has expired, the laws will affect the purchasing power for everyone. The time to buy is now, especially for foreign investors. The property values will stabilize and climb out of the current mire.

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