Queuing Around the block

This remains the picture throughout the GTA as Buyers queue up to either move up or get onto the property ladder. With interest rates at their lowest ever level, more and more people are deciding that it is the right time to buy. Three of the most influencial factors in the public decision making is the HST which is due to come into effect on July 1, 2010. Interest rates which are likely to rise in early summer, and the mortgage approval changes which come into being on April 19th. All of which have many people racing to get approved before the deadlines. For anyone who dosen't yet know what the Mortgage approval changes are, please see below

Changes to CMHC Self employed Product without Validation of income 1/ Purchase reduced from 95% to 90% refinance reduced to 85% 2/ Product redesigned for new self employed less than 3 years but at least 2 in the same field Self employed for more than 3 years must qualify by standard verification of income. Commissioned income is no longer eligible under the self employed plan without verifiable servicable earnings. Changes to Qualifying for variable or less than 5 year fixed products. 1/CMHC will be using the greater of the benchmark rate and contract rate. The benchmark rate is defined as the Chartered Bank Conventional 5 year rate published by Bank of Canada every Monday at 12:01am and can be located at the following link: http://www.bankofcanada.ca/en/rates/interest-look.html, view Conventional Mortgage 5 year, click “V121764”, then click “get rates” under “quick date” to view. The most current benchmark rate is 5.39%

Buying fever being what it is right now, means that anyone selling their home is in a very good position indeed. I recently sold a very nice home in Pickering, which was on the market just 3 days, it was listed for $450,000 received multiple offers and the sellers accepted an offer of $460,200. I listed another lovely Town Home in the beaches which was only on the market for 7 days with an asking price of $399,900 again it attracted multiple offers and sold for $437,100, along with a home in Markham once again only on the market for 4 days which was listed for $579,000 and sold for $625,000.

Sadly the three factors that I mentioned earlier will affect the current market, as Spring arrives and the listings increase then the trend of multiple offers will slow, and the balance will tip in the opposite direction. As I am telling my clients. List now, and make the most of the best real estate market we have enjoyed in a long long time.