New Year, New RulesPosted on January 04, 2016
We are back in full swing after some much needed time off with family and friends to enjoy the holiday season! And there are some changes coming in the New Year to the Vancouver real estate market that may affect you…
Effective February 15, 2016, the minimum downpayment requirement will be increased from 5% to 10% for any portion of the purchase price that is above $500,000, but less than $1,000,000. Insurance applications that fall under the new minimum equity requirement announced by the Government include:
1) All new insurance applications received on or after February 15, 2016.
2) Insurance applications received between December 11, 2015 and February 14, 2016 (inclusively) with a closing date of July 1, 2016 or later.
Purchasers who wish to purchase a home over 500K with 5% down, need to have an offer and approval in place prior to Feb 14, 2016. Time to take action if you have are contemplating a purchase in the next few months!
And the Canada Mortgage and Housing Corp. (CMHC) has just announced that it forecasts demand for the city’s red-hot real estate to slow in 2016 and 2017. Multiple Listing Service (MLS) sales in Metro Vancouver are expected to decline from an estimated 41,800 this year to 38,400 by the end of next year, according to data released Monday (October 26).
By 2017, the CMHC forecasts MLS sales will fall to 37,400 across the region.
CMHC chief economist Bob Dugan said housing market activity in B.C. and Ontario has been boosted by lower energy prices, lower mortgage rates and a lower Canadian dollar.
While those factors have offset declines in oil-producing provinces like Alberta, he expects this “counterbalancing” effect to decline over the next two years.
Prices throughout Metro Vancouver are also expected to “moderate” over that same period, according to the CHMC’s report.
The average MLS price for 2015 is pegged at $887,600 and is projected to rise 3% to $914,100 by next year. By 2017, that growth is expected to dip to 2.1% with an average price of $933,200.
“Demand for homes in Vancouver is well supported due to a strong labour market, low mortgage rates and steady population growth,” said Richard Sam, the CMHC’s market analysis for Vancouver, said in a statement.
But the report noted mortgage rates will likely rise in 2016, curtailing some of the demand in the nation’s overall housing market.
The MLS sales and prices for Metro Vancouver is based on data from the Real Estate Board of Greater Vancouver, which does not include Surrey, Langley, North Delta and White Rock.