Our summer market has been very busy with the month of July being the busiest on record for the Real Estate Board of Greater vancouver and the stats for August are not out yet but I think they will be similar. Interest rates are low with variable rates available as low as 2.55% and fixed 5 year rates just over 4%. Lack of product to sell is putting pressure on prices resulting in a minimum of choice under $400,000 for a single family home in the Maple Ridge and Pitt Meadows areas. We are anticipating a busy fall market as soon as the long weekend is over and kids are back to school.
Comments and questions are appreciated - Don
The market is very busy locally an throughout the lower mainland. The spring weather has had an effect. Rates are still very low with 25 year mortgages with 5 year terms available in the 3.75 - 3.95% range. Some banks are offering variable mortgages below prime (2.35%) . There is some increase in prices as our inventory is very low. CMHC is forecasting about a 5% increase in prices in 2010.
The Federal Gevernment has announced that it will tighten lending policies in regards to mortgages. Starting April 19 2010 a person applying for a mortgage will need to qualify on the posted 5 year rate not the posted 3 year rate. This will effectively reduce the maximum mortgage amount available to a buyer related to their gross annual income. After you have qualified you may select any term and rate you want as long as you do not exceed the total mortgage amount that you have qualified for. Also if you are refinancing an existing home and not moving you may only refinance up to 90% of value not 95%. Five percent down is still available when purchasing a home. Purchasing a second property will now require a minimum of 20% down.
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