Did you know that fall is a great time to buy a home? And with the market cooling slightly, more homebuyers have more opportunities this year. Whether your first or tenth home, it's always good to know your mortgage options. I thought I’d share four types of mortgages to help you start the home buying process.

Open Mortgage

​An Open Mortgage is for you if you want complete flexibility regarding your mortgage. This mortgage allows you to make large payments and pay off the loan without penalty. Your Open Mortgage will also have an interest that fluctuates.

Closed Mortgage

​If you want a mortgage that has a fixed pre-determined rate over a pre-determined time, you'll want a Closed Mortgage. If you pay off the loan early, you'll have to pay your lender a penalty. Closed Mortgages generally have a lower interest rate. Many lenders will let you pay a more significant percentage of your loan once a year without penalty. The payment will go towards your principal.

Hybrid Mortgages

​Hybrid Mortgages have more than one type of mortgage wrapped into one mortgage. For example, you could have a fixed rate mortgage, a variable rate loan, and many other mortgages within your Hybrid Mortgage.

Convertible Mortgage

​A Convertible Mortgage allows you to start with one type of mortgage, such as an Open Mortgage and then transition to a different kind later in the loan period.

Understanding your mortgage loan options is very important if you're considering buying. I would be happy to talk about your situation and connect you with a trusted lender to help you with your next mortgage. If you’re ready to find your next home, I’m here to help.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  Mortgage Pro Canada

Home Prices are Down but Interest Rates are Up. What is the Impact on Buying Power?

 

Home prices in Canada are dropping but borrowing costs are snowballing. The inflation correction initiated by the Bank of Canada has led to five interest rate increases to date and the next announcement is scheduled for later this month. Although these interest rates have caused downward pressure on home prices in many cities across the country, the growing cost of borrowing means Canadians are qualifying for less when stress-tested. Some prospective buyers are trying to time the market and planning to enter when home prices dip another X%, but are rising interest rates the true culprit here?

Here’s How the Stress Test Determines What You Can Afford to Borrow

When a buyer wants to take out a mortgage, the lender will “stress test” the buyer. This process ensures that the buyer can afford the amount borrowed even if at renewal the interest rate has risen. In the case of a variable mortgage, it’s to ensure that if your monthly payment fluctuates, you’ll be able to afford it at its peak. To determine your qualifying rate, a lender will stress test you against current rates plus 2%. Today, the average fixed rate is roughly between 5 – 6.14%, depending on the lender.

The real estate industry is calling on the OFSI, the regulator of the stress test, to change the process and loosen mortgage qualifying rules to give buyers more purchasing power. However, there has been no word that the stress test will change, although the next review of the process is scheduled for December.

The Real Impact of Rising Rates

It feels like a bit of a chicken and egg scenario – buyers are hoping that as home prices fall affordability will increase, but we’re still expecting to see interest rates rise. Generally speaking, for every 1% that the stress test increases, buyers qualify for about 10% less for a mortgage.

So what does this all mean for what you can afford? According to Ratehub.ca’s mortgage affordability calculator, If you have a household income of $100,000 per year, a fixed-rate of 5% amortized over 25 years, you would qualify for approximately $416,000, assuming a 10% down payment and property taxes of around $5,000 per year. If interest rates were to rise another .5%, your affordability would dip down to about $390,000.

You Can Still Maximize Your Affordability

Building on our previous example, if a home price was $416,000 and interest rates rise by 1%, then the purchase price of our $416,000 home would have to drop by 9.9% in the same period to still be affordable.

The reality of the market is there is never a “right” time to buy, but there are steps you can take to prepare yourself and maximize your affordability.

1. Secure a mortgage pre-approval: If you’re considering buying in the next four months, secure a pre-approval before interest rates rise again. It’s free, fast, and will ensure you are as prepared as you can be.
2. Consider a variable-rate mortgage: If your budget allows for some flexibility, a variable-rate may help you save money in the long run as these rates tend to be a little lower. Currently, it’s getting more difficult to qualify for a variable rate but shop around with lenders to best understand all your options. You could also negotiate for a variable rate with a fixed monthly payment option to help establish more consistency with your household expenses.
3. Pay off existing debts: If your debt service ratio is affecting your overall purchasing power, this might be the right time to create a financial plan to expedite paying down your debts.
4. Save for a larger down payment: The more you put down towards a home, the less you have to qualify to borrow for a mortgage. If you have wiggle room in your debt service ratio, you may be able to use a home-equity line of credit or another type of credit to maximize your down payment.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  Zoocasa

Metro Vancouver saw more home sellers and fewer buyers in September

Home sellers were more active in Metro Vancouver’s housing market in September while home buyer demand remained below the region’s long-term averages.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,687 in September 2022, a 46.4 per cent decrease from the 3,149 sales recorded in September 2021, and a 9.8 per cent decrease from the 1,870 homes sold in August 2022.

Last month’s sales were 35.7 per cent below the 10-year September sales average.

“With the Bank of Canada and other central banks around the globe hiking rates in an effort to stamp out inflation, the cost to borrow funds has risen substantially over a short period,” said Andrew Lis, REBGV director, economics and data analytics. “This has resulted in a more challenging environment for borrowers looking to purchase a home, and home sales across the region have dropped accordingly.”

There were 4,229 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2022. This represents an 18.2 per cent decrease compared to the 5,171 homes listed in September 2021 and a 27.1 per cent increase compared to August 2022 when 3,328 homes were listed.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,971, an eight per cent increase compared to September 2021 (9,236) and a 3.2 per cent increase compared to August 2022 (9,662).

“With fewer homes selling and new listings continuing to come to market, inventory is beginning to accumulate, providing buyers with more selection compared to last year,” Lis said. “With more supply and less demand within this market cycle, residential home prices have edged down in the region over the last six months.”

For all property types, the sales-to-active listings ratio for September 2022 is 16.9 per cent. By property type, the ratio is 12.4 per cent for detached homes, 18.4 per cent for townhomes, and 20.9 per cent for apartments.

Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,155,300. This represents a 3.9 per cent increase over September 2021, an 8.5 per cent decline over the past six months, and a 2.1 per cent decline compared to August 2022.

Sales of detached homes in September 2022 reached 525, a 44.7 per cent decrease from the 950 detached sales recorded in September 2021. The benchmark price for a detached home is $1,906,400. This represents a 3.8 per cent increase from September 2021 and a 2.4 per cent decrease compared to August 2022.

Sales of apartment homes reached 888 in September 2022, a 45.2 per cent decrease compared to the 1,621 sales in September 2021. The benchmark price of an apartment home is $728,500. This represents a 6.2% per cent increase from September 2021 and a 1.6 per cent decrease compared to August 2022.

Attached home sales in September 2022 totalled 274, a 52.6 per cent decrease compared to the 578 sales in September 2021. The benchmark price of an attached home is $1,048,900. This represents a 9.1 per cent increase from September 2021 and a 1.9 per cent decrease compared to August 2022.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  REBGV

2022 Real Estate Investing Summary

 

All you need to know, in an easy list.

There are 4 main categories of real estate that people invest in:

• Residential real estate, such as single-family rentals (SFRs), condominiums and townhomes, and small multifamily buildings with 4 units or less.
• Commercial real estate like retail shopping centers, office buildings, large apartment buildings, or mixed-use properties with both residential and commercial space.
• Industrial property, including cold storage facilities, warehouses, distribution centers, and research and development (R&D) properties.
• Land for future development or use, such as agricultural land used to grow crops or raise livestock, subdivided land in a subdivision, and individual lots to build a home or building on.

Ways to invest in real estate include: purchasing shares of a REIT, owning a home as a primary residence, purchasing a single-family rental property and multi unit residential or commercial properties.

Three reasons for investing in real estate are generating rental income, profiting from potential appreciation in property value, and tax benefits.

Real estate investors conservatively use leverage as a tool to help increase potential returns on investment.

REAL ESTATE TRIVIA

How about some fun United States real estate trivia questions and answers you can use on your next game night?

Questions

1. Who is the world's largest landowner?

2. What is the name of Elvis Presley's home?

3. Which famous skilled mason laid the cornerstone of the Capitol Building in Washington D.C. in 1793?

4. During what great land boom (1919) did investors pay up to $25,000 for lots that had not yet been dredged out of the ocean?

5. What famous person said this? "Real estate is the best investment in the world because it is the only thing they are not making anymore!"

Answers

1. The U.S. Government with over 700 million acres!

2. Graceland.

3. George Washington, the first President of the United States

4. The Florida Land Boom. Carl Fisher founded Miami that year and brought hundreds of investors to the state.

5. Will Rogers, who began his career as a rope-throwing cowboy and later became a famous stage and film star.

TOP LISTINGS

https://www.michaelcowling.com/feature-properties/

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  Real Estate News

Everything You Should Know About Buying Vacant Land in Canada

 

When buying a home in the Canadian real estate market, many commonly assume that the bulk of the cost is for the home, but in reality it, it is the land that the house is built on that is of most value.

The housing market is all about the land since, especially in hyper-dense cities, is ostensibly finite. While Canada is one of the largest countries in the world by land mass, and are are still plenty of development opportunities from coast to coast, it is also one of the most expensive markets on the planet.

But whether you purchase an empty lot in the middle of Toronto or vacant land in the outskirts of Saskatchewan, it is an entirely different process than buying a conventional property.

So, what do you need to know?

Everything You Should Know About Buying Vacant Land in Canada

Here are eight things that you should know when purchasing vacant land in the Canadian housing market:

#1 An Investment Opportunity

Buying vacant land can serve as a tremendous investment opportunity to generate steady income or save for retirement. Depending on where you live, there are so many ways that you can utilize this land, from operating it as a rental property to using it for commercial purposes. Indeed, one of the key advantages of buying vacant land is that you can decide what you want to do with it.

#2 Conduct or Review Recent Surveys

Land surveys are critical for land buyers. The purpose is to determine the property’s legal boundaries and easements. Unless the survey was done within the last year or two, it is essential that you conduct a survey with your name attached to the endeavour. You can hire a professional firm to help you begin the rigorous process. Costs will vary on the size of the land survey.

#3 Know the Costs of Developing the Vacant Land

So, without existing infrastructure on the vacant property, you will need to develop it yourself. Indeed, this goes beyond just putting together lumber and building kitchens. Instead, you will need to clean and level the land, access power lines, and identify water and sewage solutions. Suffice it to say, there is much to do when buying vacant land, which can be pretty expensive.

#4 Where Are the Roads and Utilities?

Be it residential or industrial property, you need to ensure that your land is near utilities, such as power lines, phone lines, a water main, water and gas. This can be difficult to secure in a remote area. If the property is very remote, you may need to plan to go off-grid with solar power, which will depend on local law. Investigate the rules associated with incorporated versus unincorporated townships – some will allow greater flexibility than others. In addition, when you are exploring vacant lands, it would be prudent to locate well-maintained roads enabling easy access to essential services.

#5 Understand Zoning Laws

The objective of zoning laws is to differentiate the property between commercial, industrial, and residential. Therefore, it is your job – with the help of your real estate agent – to discover which zoning laws apply to the area you want to buy. Of course, you can always apply for rezoning the property, which requires research and due diligence.

#6 Request a List of Restrictions

While you’re researching the zoning laws, request a list of restrictions, such as constructing a fence, parking a certain number of automobiles, or the height of any building built on the land. While you can always negotiate changes to the list, especially if they are outdated, it is always best to develop within the confines of these restrictions.

#7 Natural Disasters

Canada’s remote areas are more prone to natural disasters than jurisdictions closer to city centres. Some of these regions will see flooding, tornados and severe snowstorms. This can be harder to handle when you live in an unpopulated part of the country. Therefore, it is imperative not to have vacant land that is more vulnerable to these devastating events since it could threaten life and the property might not be insured.

#8 Financing

The last thing you need to determine is the type of mortgage that you will be applying for as you develop the vacant land. Here are some of your options:

Land Mortgage: This is similar to a residential mortgage, except the chief difference is that you will need to put down a more significant down payment and pay higher interest rates.

Construction Mortgage: This is the type of loan utilized to acquire vacant land so you can build on top.

Agricultural Loan: If the sole purpose of this vacant land is to develop agriculture, you can apply for agriculture-related loans, such as the Canadian Agricultural Loans Act (CALA) offered by the federal government.

Conclusion

Building a home, farm or commercial property from scratch can offer immense opportunities. Everything is new, and you can design it the way you want. It is truly an incredible feeling.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  RE/MAX

The First-Time Home Buyer Incentive – 2022 Edition

 

Housing prices are at record highs across Canada. These prices are hard on those looking for a new home, especially first-time home buyers. Buying your first home is stressful enough, but high prices, and rising interest rates, have first-time home buyers looking for help to make their mortgage payments more affordable. One option is the First-Time Home Buyer Incentive.

The First-Time Home Buyer Incentive (FTHBI) is a shared-equity mortgage aimed at making home ownership more affordable for first-time home buyers. The program is designed to lower their monthly mortgage payments without increasing the amount they need to save for a down payment. Sounds great, right? But there is more to the story, including who qualifies, how to apply, and the long-term viability of the incentive. We’ll dig into it all here.

Canada’s First-Time Home Buyer Incentive

1. How does the First-Time Home Buyer Incentive work?
2. Why is the First-Time Home Buyer Incentive important for Canadians?
3. Who qualifies for the First-Time Home Buyer Incentive?
4. How to apply for the First-Time Home Buyer Incentive?
5. Is the First-Time Home Buyer Incentive worth it?

How does the First-Time Home Buyer Incentive work?

The First-Time Home Buyer Incentive helps qualified home buyers ease the load of their monthly mortgage payments. It is a shared-equity mortgage loan with the Government of Canada. Yes, you co-own the home with the government.

The percentage of support changes depending on the type of home you are buying:

• 5% or 10% for a newly constructed home
• 5% for a resale home
• 5% for a new or resale mobile or manufactured home

The incentive is a loan based on the property’s fair market value. It is interest-free, and you can repay it anytime without incurring penalties. You should be aware of the following conditions:

1. The loan must be repaid within 25 years of the date borrowed or when you sell the home, whichever comes first.
2. While the loan is interest-free, it’s a “shared equity mortgage,” which means the government shares in any gains or losses on the property value up to a maximum profit or loss per year of 8% (not compounded).

Why is the First-Time Home Buyer Incentive important for Canadians?

First-time home buyers have a hard time getting the downpayment for their future home. A recent survey conducted by Leger on behalf of RE/MAX reveals that many Canadians struggle with housing affordability. This affordability is the primary reason the federal government launched this incentive in 2019.

Here’s an example of how the incentive benefits first-time home buyers in Canada. Let’s say Muhammad wants to buy an existing home in Regina for $400,000. He has saved $20,000 to put toward the down payment (5% of the purchase price).

Because it is an existing (or resale) home, Muhammad can receive $20,000 (5% of the cost of the home) through the First-Time Home Buyers program. That money will increase Muhammad’s down payment, resulting in lower monthly payments.

Who qualifies for the First Time Home Buyer Incentive?

The aim of the First-Time Home Buyer Incentive is to help middle-class home buyers who need a boost. Here’s how you qualify for the program:

• You must be a first-time homebuyer
• You must have a household income of less than $120,000
• The mortgage is capped at four times the maximum household income of $120,000, or $480,000. This means the average price of a home would be $500,000 to $600,000, depending on the down payment.
• You are a Canadian citizen, permanent resident, or non-permanent resident authorized to work in Canada
• You meet the minimum down payment requirements with traditional funds (which include savings, RRSP withdrawals) or a non-repayable financial gift from a relative or immediate family member.

Last year, the government modified the eligibility criteria for homebuyers in Toronto, Vancouver, and Victoria. First-time homebuyers in those metropolitan areas are now eligible for an increased Qualifying Annual Income of $150,000 instead of $120,000, and an increased total borrowing amount of 4.5 instead of 4.0 times their qualifying income. This change would increase their buying power to roughly $722,000, up from $505,000.

In terms of the home itself, it must be in Canada and suitable for full-time, year-round occupancy. It must be your primary residence and can’t function as an investment property.

How to apply for the First Time Home Buyer Incentive

The first steps are similar to the path of any home buyer. First comes pre-approval for a mortgage through your bank or mortgage broker. Then you find your ideal home, ideally with the help of a skilled real estate agent.

If you’re eligible, it’s time to apply for the incentive. Like any government program, there is extensive paperwork to complete. You provide those documents to your lender, and they submit the application for you. From there, you wait for acceptance and follow the instructions provided.

Is the First Time Home Buyer Incentive worth it?

Critics have questioned the value of the First-Time Home Buyer Incentive, arguing that it does little to help homebuyers in Canada’s priciest housing markets – the people who need the incentive the most.

We can see Toronto as an example where the incentive may fail first-time home buyers. According to the RE/MAX Toronto Housing Market Outlook Report, the average sale prices of homes in Toronto are well above the threshold of the program. The average sale price of a home was $1,054,992 in 2021. It’s estimated to hit $1,160,491 this year. The max for the incentive is $722,000, limiting the inventory that a first-time buyer can choose.

Critics point to the restrictive eligibility criteria, unnecessary extra fees, and disinterest from prospective homeowners having to co-own a home with the government as all drawbacks of the program.

Additionally, the market has seen record sale prices since the onset of the pandemic. As those prices soar, it increases the amount that you have to pay the government to settle the loan. You may end up paying more than you borrowed, a risk of the incentive.

What does the future hold for the program? The Liberal government introduced this incentive in 2019, hoping 100,000 Canadians would take advantage of the shared-equity mortgage. But recent reports have revealed that only 16,000 Canadians have benefited.

The program has paid roughly one-fifth of the expected amount ($269 million) since 2019. The three-year deadline arrives in September 2022, so we will see if the program changes, remains the same, or is scrapped.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  RE/MAX

Canadian Housing Market Outlook: Fall 2022

 

RE/MAX Canada Network expects Canadian housing market prices to decrease 2.2 per cent this fall

• RE/MAX brokers and agents anticipate prices in the Canadian housing market to ease by 2.2 per cent this fall, due to high inflation, rising interest rates and economic uncertainty
• Rising interest rates have prompted 44 per cent of Canadians to temporarily shelf their home-buying aspirations, while 34 per cent say they won’t hold on purchasing a home for the foreseeable future
• Recession worries have impelled 41 per cent of Canadians to wait to purchase/sell their home in fall 2022

Toronto, ON and Kelowna, BC, September 28, 2022 – RE/MAX brokers and agents are anticipating the national average residential sale price in the Canadian housing market to decline 2.2 per cent in the final months of the year (September-December), according to RE/MAX’s 2022 Fall Canadian Housing Market Outlook Report. This market moderation comes on the heels of rising interest rates, record-high inflation and broader global and economic uncertainties that have impacted consumer confidence and market activity. Bucking the downward trend, seven out of 30 Canadian housing markets analyzed are likely to experience modest price appreciation between 1.5 and seven per cent. Meanwhile, RE/MAX brokers and agents expect a decline in sales this fall, in 18 out of 30 markets surveyed.

In a survey of RE/MAX brokers and agents, 25 out of 30 said rising interest rates have affected activity in their local residential market this year, with some indicating that this has been the biggest factor impacting homebuyer and seller confidence – a trend that is likely to continue for the remainder of 2022. These insights are supported by a new Leger survey commissioned by RE/MAX Canada, which reveals that 44 per cent of Canadians agree that rising interest rates are compelling them to hold on buying a property this fall, while 34 per cent say they won’t hold.

“While we are still facing significant housing supply shortages across the Canadian housing market, many regions are experiencing softer sales activity given recent interest rate hikes. This provides some reprieve from the unprecedented demand and unsustainable price increases we’ve seen across Canada through 2021 and in early 2022,” says Christopher Alexander, President at RE/MAX Canada. “However, the current lull in the market is only temporary. Until housing supply increases, these ‘boom’ and ‘bust’ cycles will likely be a recurring event.”

“Despite the fact that nearly half of Canadians are waiting to buy or sell a home, we’re confident that as economic conditions improve by mid-2023, activity will resume,” says Elton Ash, Executive Vice President, RE/MAX Canada. “Timing the market for short-term investment is extremely difficult and rarely successful. But as a long-term investment, the Canadian housing market continues to yield solid returns. If someone needs to buy or sell, regardless of those cyclical peaks and valleys, being informed and working with an experienced real estate professional can help consumers clarify some of those unknowns and make the best decision possible.”

Regional Canadian Housing Market Trends

RE/MAX brokers and agents in Canada were asked to provide an analysis of their local market this fall and share their estimated outlook for the remaining months of 2022 (September-December).

Western Canada and the Prairies

In regions such as Vancouver, BC, Victoria, BC, Kelowna, BC, and Edmonton, AB, RE/MAX brokers reported rising interest rates as a factor impacting local market activity, resulting in softening consumer confidence, fewer multiple offers from buyers, and a shift toward more balanced conditions between buyers and sellers. In all regions analyzed in Western Canada and the Prairies, with the exception of Calgary, AB and Edmonton, AB, the average residential sale price is expected to decline between zero and 6.5 per cent.

In Calgary, AB, interest rate hikes and recession worries have not had a notable effect on the market, due to the region’s relative affordability. As such, a modest three-per-cent price increase is expected through the remainder of the year. In Edmonton, AB, rising interest rates have had the greatest impact on homes priced from $500,000 to $1,000,000, while those priced at $400,000 or less are still relatively affordable and a good entry point into the market, despite the current economic climate. Edmonton is likely to experience a modest price increase of 1.5 per cent for the remainder of the year. In both Vancouver, BC and Edmonton, AB, demand for luxury properties has remained stable, with interest rate hikes having a minimal impact on this segment of the market. This is expected to continue into the fall months. Low inventory remains a pressing concern in Kelowna, BC, Victoria, BC, Vancouver, BC and Calgary, AB, and is expected to place upward pressure on home prices in 2023 and beyond. In contrast, recent commercial and industrial developments have eased inventory concerns in Winnipeg, MB for the time being.

 Ontario

Much like other provinces across the country, Ontario has not been immune to the impacts of rising interest rates. Many markets including Oakville, Windsor, Barrie, Durham, Kingston and Kitchener-Waterloo, anticipate – and in some cases already experiencing – a reduction in the number of units sold over the coming months. Apart from Oakville and Muskoka, average residential sale prices in Ontario are likely to remain steady or decrease between two to 10 per cent in the fall months.

Similar to Western Canada, the luxury market has remained resilient and in-demand among buyers in Oakville, despite rising interest rates and a looming recession – a contributing factor to the modest two-per-cent average residential sale price increase expected in Oakville this fall. Muskoka continues to attract homebuyers to the area, while simultaneously, many sellers are eager to sell before year-end. Given a steady stream of demand, Muskoka is expected to experience a modest five-per-cent increase in average residential sale price this fall. In Peterborough, interest rate hikes and the subsequent effects on the stress test have eroded affordability in the area, which is the main factor contributing to the seven-per-cent decrease in average residential sale price expected in the coming months. The return of conditional offers has been a prevalent trend across the province, including in Kingston, Kitchener-Waterloo, Muskoka and Peterborough. Echoing many regions across Canada, Durham, London, Sudbury, Ottawa, the Lakelands and the Greater Toronto housing market are expected to regain balance in 2023, albeit with low inventory continuing to place upward pressure on prices. As one of the more affordable markets in Ontario, Thunder Bay is unlikely to experience any significant fluctuations in average residential sale prices this fall.

 Atlantic Canada*

Similar to Western Canada and Ontario, economic factors such as rising interest rates and a possible recession have contributed to decelerated home-buying activity in the region. Charlottetown, PEI experienced immediate impacts as interest rates rose, with the number of sale transactions reduced by almost half on a month-over-month basis, particularly among properties in the $500,000 to $1,000,000 price range. Despite these circumstances, Atlantic Canada continues to attract out-of-province buyers due to its affordability, relative to the rest of Canada. The majority of Atlantic Canada housing markets analyzed are expected to experience modest price increases through the end of 2022, including Halifax, NS (+1.5%), Moncton, NB (+6%) and St. John’s, NL (+7%). The outlier is Charlottetown, PEI, where average residential sale price is expected to decline by two per cent in the fall months.

Housing affordability continues to attract buyers in Moncton, who have been able to leverage the recent decrease in demand to negotiate with sellers and include conditions on purchases. Meanwhile in St. John’s, NL, economic pressure from rising interest rates has resulted in extended rent periods by would-be buyers, despite this region anticipating an increase of seven per cent in average residential sale prices. The trend has been further exacerbated by low housing inventory. However, recent “green” government announcements and initiatives are anticipated to boost the local economy and in tandem, the housing market. In spite of concerns over supply falling short of demand, Charlottetown, PEI is expected to regain more balance in 2023. However, inflation coupled with the increased cost of living will likely result in a moderate two-per-cent decline in average residential sale prices through the end of 2022.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  RE/MAX