Abbotsford & Mission Real Estate Insider

Market Watch July

…residential housing market has entered its usual summer cycle. In the last 10 years, sales have consistently and marginally decreased from May to June, and this year is not an exception. This shows stability in the market and also represents a continued steady market.

Sales numbers collected from real estate boards across the country clearly indicate that the residential housing market has entered its usual summer cycle. In the last 10 years, sales have consistently and marginally decreased from May to June, and this year is not an exception. This shows stability in the market and also represents a continued steady market.

The new mortgages rules announced by the Finance Minister Jim Flaherty recently is expected to cool the housing market further in Autumn as it will make it difficult for the marginal buyers to enter the market due to the higher mortgage cost.

The Finance Minister imposed new policies on residential mortgages for the fourth time in four years. Effective July 9th, the maximum amortization period for government-backed mortgages was reduced from 30 to 25 years and purchases over $1 million cannot be guaranteed by CMHC. In addition the amount that homeowners can borrow against the equity in their homes is reduced from 85 to 80%.

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