House prices remain steady as home sales were up during the month of October while supply was down. Sales were up 19% from last year and the average price of a residential home rose over 18% to $720,000.
The chief economist for the BC Real Estate Association Cameron Muir says a lack of supply continues to put upward pressure on prices. Total active listings were down 5% compared to the same time last year.
While there are pessimists who expect house prices to fall (these pessimists have been saying this since 2008!) there is the issue of low supply which continues to keep prices up. In response to this, more and more condos and townhouses are being built rather than detached homes.
So far this year residential sales volume was down 9.4% to $63.8 billion compared to the same period in 2016.
Also, don’t forget that the mortgage rules are changing on January 1st. Anyone with 20% down will now have to qualify for their mortgage at a rate that is 2% higher than they are actually paying. This may lower your ability to borrow by approximately 20%. We need a live offer in place or an approval prior to December 31st to take advantage of the old rules. If you need any advice on your personal situation please contact our office at 604-556-3893 or email at alex.kotai@ymscanada.ca.
For more information on our mortgage products and your preferred Abbotsford Mortgage Broker please visit our website at www.ymscanada.ca.