Bidding Wars... On Condo Rentals?

November 22, 2012 | Posted by: Mike Garganis

Rising Home Prices + New Mortgage Rules = Fewer Qualified Home Buyers

Is This an Investment Opportunity?

 

Home sales are down (which is normal this time of year), and October 2012 home prices are up 6.2% compared to October 2011.  

The media continues to do an excellent job instilling panic into the public.  Enough of the 'Armegeddon', 'the sky is falling', attitude.

I don’t know about you, but I have compiled my own conclusion based on stats and facts.

 Canada's Mortgage and Housing Corporation (CMHC) “A weaker outlook for global economic conditions and the waning of the effect of pre-sales from late 2010 and early 2011, which contributed to support multi-family starts this year, will bring moderation in housing starts next year.

Nevertheless, employment growth and net migration will help support housing starts activity going forward,” said Mathieu Laberge, Deputy Chief Economist for CMHC.

 

“Sales have decreased in the second half of this year compared to 2011, especially since the onset of stricter mortgage lending guidelines at the beginning of July.  The prospect of higher monthly mortgage payments due to the reduced maximum amortization period has prompted some households to delay their home purchase,” said Toronto Real Estate Board (TREB) President Ann Hannah.

 

The average selling price for October transactions was $503,479 – up 6.2 per cent compared to October 2011. The MLS® Home Price Index composite benchmark price, which allows for an apples-to-apples comparison in terms of home attributes, was up by 5.1 per cent.

 

 

“We continue to see price increases well above the rate of inflation.  Active listings have remained low from a historic perspective, so substantial competition between buyers still exists, especially for low-rise homes,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Let me think about this.... do I want to read 'news' articles from journalists who don't have a background in the financial or real estate industry, or do I want to go to the source and come to my own conclusion?

 

First-Time Home Buyers, check out my blog about using your RRSP to help you buy your first home.

 

Don't forget, as a Mortgage Broker, I don't just have access to banks, but 20 other financial institutions, credit unions and private lenders, all of which have not been affected by all the rules applied by the federal government. 

 

Visit my Links of Interest page.  Get educated...ask questions.  There is no such thing as stupid question only someone who doesn't know the answer.

 

I will answer your questions... contact me today.

  

Mike Garganis
Mortgage Agent - Lic# M08003660

Cell: 416-481-6444 | Office: 905-591-6600

Email: mgarganis@mortgagebymike.ca

  

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