THIS IS NOT A BUBBLE!

Published By: on November 25th, 2011 in Category Nanaimo Real Estate News
Published By: on November 25th, 2011 in Category Nanaimo Real Estate News

Here’s a note from the head of RE/MAX NANAIMO:

I’ve been hard pressed to find a positive headline in the last few weeks. In view of that, I thought you may be interested in these comments. I had lunch today with Larry Pollock , CEO of the Canadian Western Bank. We were talking about the stability of real estate in Western Canada and on the Island.

CWB has a very large exposure to real estate and therefore a big interest in the stability of values. He first spoke of the differences between the Canadian and US markets that we often compare ourselves to. Given the tax deductibility of mortgage interest in the US, his analogy went like this. “In the US, the average homeowner goes to bed dreaming of a bigger mortgage to purchase consumer goods. In Canada, we dream of going to bed and paying off our mortgage”. 50% of Canadian homes are owned clear title. 30 to 40% have 50% equity or better. He sees a big difference between our two markets. These conservative habits have kept foreclosures to a minimum, giving his Bank the opinion that we are not in a bubble.

Other interesting points included; The Banks research suggests strong immigration numbers will continue to play a large role in the growth of Vancouver. The Bank has forecast prime rate to remain unchanged through 2012. More stability…

All in all, he stressed his optimism for real estate values and provided a list of impressive reasons to back it up.

Charlie

Testimonials

We really appreciated Lisa’s help finding the perfect condo for us in Nanaimo. Lisa was a pleasure to work with, responding promptly, cheerfully and efficiently to even the smallest request. She worked tirelessly to get us familiar with different neighbourhoods and to consider different options. Even after the sale was completed successfully – which she facilitated professionally and expeditiously – she was always available to help. Working with Lisa was a great experience.

Alison MacPhail

Love Real Estate Group proved an invaluable help when helping us through the maze of buying a new home, especially when for us it was our 1st home in a new country. No problem was too big and their fun approachable demeanours meant that the whole process was a lot less stressful than it might’ve otherwise been.

Julie & Stuart Ockelford