Current market explanation:
A shift in the real estate market can be beneficial to home buyers and home sellers depending on which way the market is shifting.
The current Vancouver Real Estate market is shifting in the favor of the buyers. This is primarily the case for condos in Vancouver and the surroundings areas, this market as seen prices increase significantly in the last 28 months in Greater Vancouver. Recently as I watched the market and also with my current listings, I am seeing properties taking longer to sell and with 0 to 1 offer in the beginning of the listing. In the past 28 months almost all condos would sell with multiples offer and above the asking price. Some of the reasons, in my opinion, are the significant changes in the mortgage rules implemented by the Federal Government. One other reason is that Real Estate prices can only rise for so long before it becomes unattainable for the majority of home buyers.Here is a video about the market situation:
Mortgage “Stress Test” explanation:
The main change in the mortgage rule is what has been called the” B-20 stress test”. Buyers applying for a mortgage must now pre-qualify at a rate 2% higher than the current Contract rate or the benchmark rate of 5.19% (which every is greater). Keeping in mind if you make a purchase over 1 million a minimum of 20% down payment would be required. To see how this rules affect you contact a mortgage broker or a mortgage professional at your bank. Here is a useful link that will provide you more details about the Mortgage Stress Test https://mortgagepal.ca/b-20/This shift in the market is not necessarily negative for Real Estate owners, as long as you are aware that you must price your property properly according to the current market demand. If you wish to sell your Real Estate in a timely fashion and for the most money, I will be happy to meet for a no obligation consultation.