While some buyers may be jumping up and down, the decrease in the interest rates is not going to make a big difference to buyers in the key areas. Those areas are Richmond, the West Side of Vancouver and West Vancouver.
The majority of the buyers in these areas would probably prefer to see an increase in rates if the truth be told in order to get a little better return on their investment portfolio. The mortgage money is for the most part already in place.
Four or five years ago many of the buyers were dependant on first mortgage financing, while now many of the buyers are using other assets as collateral for their next purchase. This works well unless of course there is an embargo against the country where your assets are currently held.
Prime Minister Harper made a statement announcing that Canada is imposing sanctions on Iran. These sanctions were announced in response to the IAEA's November 9, 2011 assessment of Iran's nuclear program, Canada is imposing further sanctions under the SEMA. The new sanctions prohibit financial transactions with Iran. The new prohibitions on financial transactions do not apply to contracts entered into prior to November 22, 2011.
This may well have an effect on purchasers and sellers involved in a chain sale, where buyers and sellers have removed their conditions based on an assumption of a commitment from their lending institution. It will be interesting to hear how the lending institutions handle having given an approval in writing and then rescinding that offer.
For further information on the power of your dollar, the chance to purchase or just the need to catch up on Real Estate in West Vancouver, British Columbia. Call, text, tweet, mail or mozy to www.patrickodonnell.com
NB: The IAEA is International Atomic Energy Agency & SEMA is State Emergency Management Agency