Will mortgage rules impact White Oaks home sales?
The year 2011 was barely out of the gate before changes to mortgage rules were announced. Effective March 18th, mortgages cannot be amortized for more than 30 years and home refinances are limited to 85% of value.
What will this mean in the coming months to the White Oaks real estate market?
The shorter amortization period will probably affect first time buyers the most. A shorter amortization will result in higher monthly payments which may not compare favourably to their rent payments. If their budget is tight they may delay their decision or lower their price range. The White Oaks neighbourhood has a large number of condos which are popular with first time buyers. If the number of first time buyers decrease, I can see townhouse condos spending a little more time on the market than previous years.
Twelve White Oaks homes were reported sold in January. Half of those were apartment condos. Single family home prices appear to be stable if tha can be judged by the few that sold last month. Conversely, townhouse prices fell last month but that may be a reflection of the quality of the product more than the market.
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