We see a sharp decrease in values in 2008 due to global recession (worst in our trading partner to the south the US) and drop in consumer confidence, and then we see a sharp recovery. The recovery was the result of pent up demand, increased consumer confidence, Buyers rushing to Beat HST, all time low interest rates, and pre-Olympic hype and publicity.
Everyone lately has been asking me what will happen next. With high demand, high prices, and high rent rates, investors and residents are asking will anything give? Since I believe Demand will continue to grow steadily, led by new immigration and foreign direct investment, and our supply is geographically limited, the best person to ask this question to may be your banker or your local politician!
This is because I believe interest rates to be the determinable factor in what happens next in Vancouver Real Estate. If they stay low or rise slowly as most experts predict than I am very confident real estate will continue to be the best tangible investment one could make. Especially as their principle residence as home owners build equity and add value to their property through home improvements.
I bet on low interest rates as record foreclosure rates in the US and devastating recessions in big global markets across Europe and Asia suggests a booming economy is not in our near foreseeable future, and the government won't drastically raise rates until our economy indicates strong recovery.
Vancouver, BC has the worlds best banking system, one of the best education systems, its safe, clean, temperate, we are rich in natural resources, and we are positioned to be a major player in Trade and Travel for decades to come.
If you have any questions regarding Vancouver Real Estate please do not hesitate to call 604.562.0532 or write Stu@StuBell.com.
