As many workers return to the energy sector, it is warming for Albertan’s to see signs of improvement in the province’s economy. Improvements in the housing market usually trail surges in oilfield activity & the colder months. This gives us higher expectations for spring & summer 2018.
On the other hand, the federal government has once again tightened mortgage rules for all Canadians. Home buyers who will be affected by the new mortgage rules should consider whether or not buying before the New Year is in their best interest. Home sellers may also be affected by the new rules. If planning to upgrade, downsize or simply buy more real estate, they as buyers will now qualify for lesser mortgage amounts as well. Under the new rules, even home buyers who don’t require mortgage insurance because they have a 20% down payment, will have to prove they can afford their mortgage if interest rates rise above Bank of Canada’s posted rate of 4.95% or 2% higher than their existing mortgage rate, whichever is higher. Effective January 1, 2018.
NEW HOME INVENTORY
There were 61 completed and unoccupied single & semi-detached dwellings (including show homes) reported by CMHC in Red Deer for October, up from 53 units in the previous month & 38 units a year ago. Unabsorbed new townhomes & apartments stood at four units in October, up from two in the preceding month but down from 12 units in October 2016.
Single-detached starts in the Red Deer area decreased in October by 16.7% year-over-year to 20 units. For the year-to-date, single-family starts have increased 34.6% from the first 10 months of 2016 to 171 units. With two months remaining in 2017, single-family builders have already surpassed last year’s total count of 163 starts.
Information Based on Red Deer Real Estate Board MLS® Stats 2013-2017
Posted by Jay McDouall on
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