As Canadians prepare for the fall real estate market ahead, the decision on whether to buy or sell a home this year vs waiting for Spring will have more factors to consider. Housing affordability, interest rates and the mortgage stress test of 2018 and 2019 are no longer the main headlines. With the upcoming federal election on October 21st around the corner and with it unknown upcoming policies – it begs the questions; do you sell now or wait?
So, what can you expect from fall real estate market? In Kamloops, we will continue to see a slow down of inventory which is typical for this season but also a slow correction from the past two years. Those seeking a long-range forecast will have to wait at least until election day and likely well beyond, to see what party takes power, which policies they move ahead with and how these changes play out in real time. Uncertainties aside, here’s what we do know:
Canadian home buyers seem to be getting used to the new mortgage rules, and there have been some important changes at the federal level that are expected to impact buyers and in turn, home sellers:
- The mortgage stress test qualification bar was recently lowered from 5.34 to 5.19 per cent, increasing purchasing power – albeit only slightly.
- The First Time Home Buyer Incentive (FTHBI) took effect on September 2, whereby eligible first-timers can get a shared-equity government loan to help with the down payment. APPLY HERE!
- The Home Buyers’ Plan (HBP) withdrawal limit was increased from $25,000 to $35,000, toward the purchase of a first home.
- Rumours of interest rate drops are circulating. The Bank of Canada’s interest rate announcements are a trending topic worth watching every six weeks.
Homebuyers and sellers need to remember that all housing markets are local and that is it important to contact your local agent to discuss your personal situation with the knowledge of our area to best advise you on market trends, and counsel you on the timing of the transaction, and the price.
If you’re in the market to find a home, the ‘right’ one could come up anytime – Seller’s who have to relocate, going through a family change or retiring are selling their homes… leaves and snow on the ground or not! Putting your home search on hold till the Spring isn’t always necessary.