30 Dec 2018: what can we expect to see in the housing market?
According to to a report by Royal LePage, the new stricter mortgage rules are expected to slow the housing market in 2018, but prices are still expected to rise almost five per cent. In fact, in its market survey forecast, Royal LePage indicates that its survey, which measures prices in 53 cities across the country, mentions an increase by 4.9 per cent, placing the average value at $661,919.
One of the big changes we have been emphasizing is the new stress test required for homebuyers who don’t need mortgage insurance. The new rules are expected to reduce the maximum amount buyers who have a down payment of 20 per cent or more will be able to borrow, starting this January 1st.
Royal LePage’s report further indicates that some potential buyers looking to upgrade may delay the process as they analyze their finances, which in turn will slow down the market as they take a “wait and see approach” as they may not have access to sufficient financing for their next purchase.
Still, the prices to purchase a home will be on the rise and the report suggests home prices in the GTA are expected to increase 6.8 per cent throughout 2018.