Dollar-a-day mortgage to spur sales in Vancouver
As Canadian banks slash their mortgage rates to new lows, a developer in B.C. is offering a dollar-a-day mortgage to interested home buyers in the Metro Vancouver region as incentive to buy in. WestStone Group and Platinum Project Marketing are offering the deal for buyers of a luxury condo in the Vancouver suburb of Surrey. After the first year, buyers must start paying down the rest of their mortgage at the regular rate. According to BNN, Vince Taylor, of Platinum Project Marketing, said the move is critical to entice prospective buyers who are savvier than ever. "If we're not one step ahead; if we're not fully prepared; if we're not ready to go a mile further than the next guy, we won't sell any condos," he said.
Good news for industrial real estate market in Vancouver
Industrial real estate deals in Vancouver hit a record $140 million in 2014, up from $100 million the previous year as fewer, bigger deals were made, a report from Avison Young found. The deal surge is attributed to new zoning regulations put in place by the West Coast city which have opened up industrial property for office use. “Current rents cannot match what you would be able to earn when you build a new facility,” said Struan Saddler, an Avison Young vice-president who specializes in industrial leasing and sales transactions.
Analyzing Canada's real estate market: Huffington Post Canada
The real question is how incremental interest rate increases may reflect on the present unsold real estate inventory, a realtor writing for the Huffington Post wonders in an online piece. As a result of interest hikes, markets may slow down and turn the unsold inventory stock into oversupply. The two hottest hubs in the country, Toronto and Vancouver, may be particularly affected. At the beginning of last year, TD bank economists predicted over valued real estate to go down about eight per cent over a two year period. He predicted values to go down over a two year period to 25 per cent, and possibly more. In December of last year, Bank of Canada finally admitted in their estimation that the housing market is overvalued by as much as 30 percent. On December 10, 2014, Mr. Poloz was quoted as saying that "Some financial vulnerability appears to be edging higher," alluding to frothy house prices and heavy household debt levels. At about the same time, Re/Max was expecting house prices in the Toronto area to rise by only four per cent, which is about half of 2014's appreciation (8.3 per cent). If present trends are indicative of what lays ahead, future real estate investments particularly in condominiums may present a challenge for the fact that they are already considerably overvalued, he writes. Read more here