Will The Condo Market Bubble In Vancouver Ever Burst?

By Jsleigh14 @jsleigh14

2008 really hit all the major economies really hard and left many of them down there, writhing hard in pain and depression. This was the recession that made major banks and organizations go bankrupt. On the other hand was this ever growing, ever resilient market that was still treading ahead in all robustness.

It was the Port Moody real estate market. Amidst the shouts that economy has been stalled for ever, here were people still going to realtors in search of nice places to live in. many people attributed it to simply the living standards than to stability but soon they knew better.

The Initial Lull

It will be wrong to say that Vancouver was untouched by the recession as in the end of 2008 and most of the 2009, there was a slight decline in property value. But soon it all changed. Fast forward it to 2015 and people are still getting good prices for all kinds of establishments including condos.

The Reasons For The Growth In Demand

Low Mortgage Rates: Initially the reason for people buying real estate was the fact that they did not have to worry about mortgages or loans as the housing loans were naturally very low. This led to no panic at all and in fact encouraged people to continue buying establishments and other constructions all through these years.

Private Money Lenders: There are many people with bad credit history who do not have the option of going to a bank and getting a deal. This is generally due to the fact that though these banks have low interests, their policies are very strict. The fact is that most people can pay back mortgages and loans despite being on the wrong side of credit history. Therefore, the private money lending market thrives in Vancouver. So with many people or groups willing to lend you money on simpler and easier conditions and terms, most people bought property this way. These are generally the people who are willing to make more money with their already present excesses.

Unaffected Banks: The banks of Vancouver remained unaffected for the longest time as they did not crash or go bankrupt during the meltdown. This provided a support to people for buying more realty.

Culture Support: In Vancouver MLS buying houses or condos or any other establishment has been a norm. When something is ingrained in you, one finds ways to accomplish it.

To date the Vancouver condo market is growing and in demand.