The real estate property market in Vancouver, Canada has now gone haywire with the spiralling rise in property values, coupled with the onslaught of foreign buyers lapping up real properties in several key areas.
Property prices are now sy its highest levels, and is expected to climb up some more in the next few years. Now, is there a lot of speculation in Vancouver real estate market in 2012?
It has been said that this excessive speculation now happening in the Vancouver home market that is not doing the residents any good. This phenomenon of speculation gave rise to overshooting property values, which is now far beyond the reach of ordinary folks. Buying a house now would entail too much capital outlay and monthly instalment fees, leaving little monies to invest in other things. With high mortgage payments, the triggers for economic renewal, like purchase of basic commodities and investments in small businesses, is kept to a minimum.
With little or no investments in the local Vancouver economy, Vancouverites , is seeing the fall of many small businesses in the locality. This has resulted to unemployment with many folks joining the part-time labour market. This type of labour does not get paid like regular labour. They are paid less, and their jobs may be temporary or seasonal. With an economy that is tipping towards recession, coupled high property values, there is now seen a marked increased in foreclosures proceedings.
The real property markets now is considered robust, attributing it mainly to local investor confidence and foreign investor entry the past few years. There has been an increase in the purchases done by the Chinese investors among others, who avowed that Vancouver property values as a guide, is still undervalued as of today.
The local folks also had a hand with the steep property values now being experienced in the real estate markets. It was not uncommom 10 years ago, to see people buying their homes at bargain prices and then re-selling it a couple of years later at windfall profits. This situation plus the entry of foreign investors, had presently pushed property values beyond the reach of the ordinary folks in Canada.
With proper guidelines from local governments, this situation can be be mitigated to avoid any untoward movements resulting to the uncontrolled upward spiral in property values.