Not sure how to say Happy New Year!
New mortgage rules put in place by the federal government take effect this January. It is widely expected that these will have a fairly significant depressive effect on the market, as was their intent. The excessive strictness of these rules means housing activity will be reduced in 2018.
This is possibly good news for an investor who has the down payment available, with room to qualify at the new “stress test” levels. As sales are not as strong, prices may follow with a decrease over the year.
Not everyone will be able to take advantage of the expected lower prices. These rules along with those the feds implemented in October 2017 have affected first-time, young homebuyers most significantly. But also, many people will find, as they try to renew their mortgages, that they will no longer qualify as they did when they first got their mortgage. These people will be facing higher interest rates in order to keep their mortgages.
Certainly, the prospect of moving up this year will be much less likely.
Selection (supply) for buyers may increase as owners choose to downsize, rather than absorb the higher interest rate forced upon them. Again a result of this (intentional to the legislators) is to see a softening of prices, not awesome news for Sellers and the value of their investment right now.
So, Sellers… be particularly strategic this year. Hire a trusted, knowledgeable REALTOR® to assist you with all the aspects of your sale: timing, pricing, appearance, advertising and promotions – one who is capable of pulling out all the stops to market your property in a difficult environment in order to achieve the best value for you.
Yes, this year could be challenging for both Buyers and Sellers. Let us help you to make the Right Choice – give us a call!
There are many things that are more important in your HOME than property values – family, friends, health, love & peace – for these… Have a very Happy New Year!
Ron Lagemaat Broker/Owner | Right Choice Realty Inc.
#202 – 1119 3 Ave S, Lethbridge AB T1J 0J5
(403) 393-5582 | firstname.lastname@example.org | www.rightchoicelethbridge.com