Homebuyers Requiring a Mortgage are Scrambling to Buy before year end.
Steveston and surrounding real estate will likely be affected by the change in qualifying rules for mortgage to come into affect January 2018. The popular communities with young home buyers of South Surrey, Surrey, Coquitlam, Langley, because of their relative affordability, will likely be especially challenged.
“The only people unaffected are people who don’t need mortgage financing, because now you have captured the entire market,” said Gregory Klump, chief economist at the Canadian Real Estate Association.
In other words, people buying with “cash,” as realtors like to describe no debt transactions, are the only ones unscathed.
“I’d be very surprised if 2018 is not materially lowered,” he said, referring to the forecast for housing prices and sales.
Until then, however, he sees a major bounce in activity as consumers rush to beat the deadline for OFSI’s latest rule change, which could end up costing homebuyers about 20 per cent of their purchasing power.
“There will be some pull forward of sales,” says the economist, adding that by January sales will have dried up and then it will take some months for the market to stabilize.
If you know anyone planning to buy soon and will require a mortgage, even with 50% down, it may be to their advantage to buy now as the mortgage specialists are saying that such homebuyers will lose up to 20% of their purchasing power with the new rules. Call me to find out is buying or selling now or in the new year is best for you.