The writer is a Vancouver mortgage broker with experience in bad credit mortgage in Canada applications. He is familiar with most bad credit Canada mortgage lenders. Potential purchasers need not be worried if there credit difficulties in the past.
April was a bad month for Vancouver house prices. CMHC recorded another reduction in prices in the month of April. The reduction was due primarily to the reduction of house prices by new home sales.
Developers are slashing prices to get ahead of the market. Excess inventory in the market is forcing the developers to cut prices now. Otherwise they risk having to hold inventory until the market breaks and who knows when that will happen.
As I stated previously, even in the face of the real estate pimps, the market is due for further corrections. The vulture negotiating by buyers against the greed of the sellers will eventually result in a win by the buyer. They will control the level of pricing in this market as more and more Vancourites hold back on consumption.
Here is a quote from the NY Times on the three year slide of home prices in the U.S.
“Such long, steady housing price declines seem to defy both common sense and the traditional laws of economics, which assume that people act rationally and that markets are efficient. Why would a sensible person watch the value of his home fall for years, only to sell for a big loss? Why not sell early in the cycle? If people acted as the efficient-market theory says they should, prices would come down right away, not gradually over years, and these cycles would be much shorter.
But something is definitely different about real estate. Long declines do happen with some regularity. And despite the uptick last week in pending home sales and recent improvement in consumer confidence, we still appear to be in a continuing price decline.”
Don’t say it won’t happen here.
Vancouver mortgage insight is provided by Duncan Seward a registered Vancouver mortgage broker with TMG. He helps clients in North Vancouver, Surrey, Vancouver, Coquitlam, Maple Ridge, Burnaby and Langley with their mortgage questions. He is an expert in BC mortgage matters. You can check out regular mortgage updates at his blog page Vancouver Mortgage Rates.
