It is going to become even harder this fall for new mortgage applicants to afford that dream home. As reported in the REW.CA news:
"Previously, the mortgage “stress test” introduced last fall only applied to those with insured mortgages, with less than 20% down payment, and required those new mortgage applicants to qualify at a much higher rate than the one they would actually be paying. This fall, OFSI is expanding this rule to require all new mortgage applicants to qualify at the higher posted rate (currently 4.64%), even if they have more than 20% down and an uninsured mortgage."
See the full article here: Stricter Mortgage Rules
Some tidbits from the 2016 census:
For the complete report click here: 2016 S.C. Census Data
The Bank of Canada today raised its target interest rate by .25 percent, citing increased confidence in the Canadian economy. Mortgage rates will no doubt follow suit very soon. Read the full press release from the Bank of Canada here: http://www.cbc.ca/news/business/bank-canada-interest-rate-monetary-policy-1.4200814.
More in-depth analysis of the economy can be found in their Monetary Policiy Report press conference release, with a link to the report itself: http://www.bankofcanada.ca/2017/07/opening-statement-120717/
Condo sales are what is driving the Lower Mainland market now, especially in Vancouver, where prices for single detached homes are still climbing. The Sunshine Coast is its own unique market, and I will be reporting on that as soon as the statistics come out, but to get a feel fo the overall picture for the Lower Mainland see the Real Estate Board of Greater Vancouver's press release and report on the June market. http://www.rebgv.org/sites/default/files/REBGV-Stats-Pkg-June-2017.pdf
The joint agreement signed by the NDP and Green parties reiterates an election promise both made to take action on real estate speculation and fraud.
However, real estate is mentioned just once in the agreement in section 4(b), where the parties agree to:
“Make housing more affordable by increasing the supply of affordable housing and take action to deal with the speculation and fraud that is driving up house prices.”
There are no further details available yet but we can glean some idea from the party platforms put forward by the parties prior to the election. Ironically, the Green party has come up with the more draconian measures of the two:
1) a hike in the property transfer tax for homes assessed at more than $3 million,
2) a tax on lifetime capital gains more than $750,000 on principal residences,
3) bumping the foreign buyers tax to 30 per cent and making it provincewide,
4) progressive property taxes, and
5) a switch to income-based homeowner grants.
For more information on the respective parties' platforms see this article on the Business in Vancouver web site: https://www.biv.com/article/2017/4/housing-top-priority-ndp-green-platforms/
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Now you can always see the latest statistics for Sunshine Coast real estate -- total active number of listings and sales, days on the market, benchmark price, and more -- by going to the "Market Satistics" tab under "Blog" on my web site. These easy-to-read reports are generated by the Real Estate Board of Greater Vancouver on a monthly basis and usually come out at the end of the first week of every month. Stay in the loop and check here often.