Where Is The Market Headed After New Mortgage Laws Announced

While many believe that these new mortgage laws have come a little too late, their creators are hoping that this will soften the blow and not make the market crash as hard as some are predicting it will. The Brantford/Brant County Real Estate market, like the rest of Canada, is hoping to benefit from these changes.

One of the biggest parts of the new law has to do with the amount of money a buyer can take in a loan when paying for a house. Now at 80% from 85%,  this rate will give the buyer less debt in the long run, however many analysts are reporting that this decrease will make it more difficult for people to purchase homes, possibly leading them to rent rather than buy. Along with the lower rate for borrowing money, the payback period has dropped to 25 years from 30 years.  This would give home owners a chance to pay back anything owed in 25 years, and after that would be debt free. Some reports are showing though that most Canadians only have 15 years left on their mortgage, saying this part of the law is not beneficial in the long run. 

While the government is hoping that these changes will help home owners with their debt, many are saying they waited too long in order to do any real help.  With less time to repay loans, many officials are predicting higher payments will be required. With higher payments, homeowners may not be able to reach the unrealistic goals and won't be able to back their borrowed money in a reasonable amount of time. 

With stricter mortgage rules, many first time homebuyers will feel that renting is a better idea than buying. Although rental prices are reported to increase due to the laws, it is leaving first time buyers in a financial bind. While more renters mean more money in the Brantford/Brant County Real Estate market, it is also predicted to reduce prices once the rush of buyers has dropped off. 

If you have any questions regarding the new mortgage laws, or are interested in buying or selling Brantford/Brant County Real Estate, feel free to contact me! I look forward to hearing from you!

Wally Dufrat | Sales Representative
RE/MAX Twin City Realty, Inc. Brokerage

Over 525 Closings!
515 Park Road North | Brantford, ON N3R 7K8
Direct:  (519) 752-5400 & (877) 759-5900 | Cell: (519) 761-7400 | Fax: 519-752-3400

Before You Buy or Sell Your Next Home, Visit My Websites at:
www.BrantfordHomeInfo.com or www.FreeBrantfordHomeInfo.com for FREE Information!
 

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Canadian Real Estate Starts Strong in 2012

One of the things that made the Brantford Real Estate market stand out most in 2011 was its healthy home prices, solid home buyer activity and record-breaking housing affordability conditions. Some were worried that housing would flounder as we entered 2012, but if the latest statistics are any indication, then the local housing market will continue to prosper in the coming months.

As your Brantford Real Estate Agent, I strongly feel that part of my responsibility is to closely monitor national housing statistics. In order for me to advise my clients on the best course of action for their upcoming real estate transactions, I really need to be in-the-loop about the current market and use the existing trends to give the best advice possible. I feel a responsibility toward my clients to be 100% honest with them about what’s happening in Brantford Real Estate, so if a home buyer or home seller comes to me asking if now is the best time for them to enter a new transaction, I always use the existing statistics to explain my answers. This approach to consulting my clients is another way in which I have become a trusted Brantford Real Estate resource.

Below is a summary of some of the latest housing statistics for Canadian Real Estate:

•    The existing statistics for the start of 2012 show a strong start to the year nationally.
•    For the 11 metropolitan cities that are included in Teranet-National Bank Composite House Price index, home prices were up 0.1% in January as compared to December and up 6% from 2011.
•    The largest January home price gains were seen in metropolitan areas where buyers have been especially active lately—i.e. Toronto and Halifax.

Given what we know about the latest housing statistics, here are a few conclusions that we can safely draw from these national numbers:

•    Modest price gains can give sellers hope. While the Brantford Real Estate market is still more beneficial for buyers, a steady rise in home prices over the past year has made sellers more confident about listing their home on the market. Now would actually be a good time to do so, while prices are still on the rise but affordable for buyers. You would see offers come in at higher values faster.
•    Home buyers should still enter the market. Although there are price gains happening in Brantford Real Estate, mortgage rates and home values are still incredibly affordable for buyers. Many buyers have been feeling a sense of urgency about entering the market because prices are still low and affordable, but they’re also starting to go up. In order to take advantage of the market conditions, home buyers would be wise to enter the market now before prices start entering an unaffordable range.

We’re in a phase of Brantford Real Estate where conditions are decent for sellers and buyers, so it would be a great time to consider entering the market this spring. As your Brantford Real Estate Agent, I feel a responsibility to my clients and community to give them my honest assessment of market trends, and this spring, I’m happy to report that both sellers and buyers have reason to be optimistic.

If you have any questions about entering a Brantford Real Estate transaction, don’t hesitate to contact me! I’d be happy to help in any way that I can. I hope to hear from you soon.

Wally Dufrat | Sales Representative
RE/MAX Twin City Realty, Inc. Brokerage
Over 518 Real Estate Closings!
515 Park Road North | Brantford, ON N3R 7K8
Direct:  (519) 752-5400 & (877) 759-5900 | Cell: (519) 761-7400 | Fax: 519-752-3400

Before You Buy or Sell Your Next Home, Visit My Websites at:
www.BrantofordHomeInfo.com or www.FreeBrantfordHomeInfo.com for FREE Information!
 

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