Four Questions About Vancouver Real Estate
In the last year the Vancouver real estate market has seen rapid mortgage rates increases, record high prices, price declines and a slow down in sales and listing activity. This month I am going to touch on four questions you may have if you are thinking of buying a property in Vancouver.
- Is this a good time to buy?
- How much would my mortgage cost me?
- How much income do I need to earn to qualify for a mortgage?
- What does $1M get me in Vancouver?
Is now a good time to buy?
If you are thinking of buying an owing for a long period of time, it is probably safe to assume the value of of property will grow. This is because we know housing demand is stronger then supply and I don’t see this trend changing in the near future. Vancouver’s population is expected to grow and there is already a housing shortage. Vancouver’s Metro 2050 regional growth strategy published in February 2022 estimates there will be an additional 1.1M people in Metro Vancouver by 2050.
Click here for full article
The Canadian Housing and Mortgage Corporation (CMHC) released a report in June 2022 stating that BC needs an additional 71K units per year, over what’s already planned.
Yes, there were some price drops from spring 2022 peaks, but the fundamental laws of supply and demand should make you feel comfortable that you can expect the value of your home to grow over the long term in Vancouver.
What Will My Mortgage Cost Me?
Assuming you put 20% down and borrow $800K on a 25-year amortization schedule at the current 2-year fixed rate of 5.79%, you’re looking at around $5K monthly. You also need to consider your strata fees, property taxes, and, of course, your new home’s utilities.
How Much Do I need to earn to qualify for a $800K mortgage?
A lot goes into figuring out your mortgage, and you should talk to a professional. As a rule of thumb, you likely need a household income of around $170K to qualify for an $800K mortgage.
We’re in a dynamic market and everyone’s situation is unique. Knowing when to buy can be tricky with everything that’s going on. I hope you found this month’s newsletter insightful. If you’re thinking of buying and have more questions I’d love to help you out. Even if you’re not ready but are curious and want to keep an eye on listings, send me an email and I can set you up in my automated system to receive listings as they hit the market, no pressure.
If you have any financing questions, I recommend speaking with Elisa Swezey. https://www.elisaswezey.com/