The Loewen Group Mortgages team will always strive to supply you with the best rates and services on the market today. We are always informed on the residential market update in order to best advise you on when to buy. Whether you are looking for mortgage rates in Milton, Ontario or are wanting a Milton mortgage, we can work with you to fulfill those dreams.
The Canadian housing market has recently undergone some big changes. This includes the new stress test required for potential homebuyers and for refinancing. The stress test states that borrowers need to be able to afford their current negotiated rate plus an additional 2%. This is to force homeowners not to borrow more than they can afford.
The new Canadian mortgage rules also introduce higher interest rates. With these changes in the market, home sales in Oakville and Milton have been affected. According to the Canadian Real Estate Association (CREA), just over 400 homes in the Oakville, Milton and District region were sold in January 2018, and 456 homes were sold by January 2017. This 12% decrease in sales is suggested to be correlated with the new mortgage rules. With an increase in interest rates, more people might be putting a hold on buying a home to save up more money.
Another potential reason for the drop in sales could be the time of year. Spring and summer is generally the peak time to buy homes, and since Canada experienced a particularly harsh winter this year, that could have deterred potential buyers for wanting to close a deal now, and instead are waiting for spring/summer.
The Oakville, Milton, and District Real Estate Board (OMDREB) compared all the property sales from January 2018 to the year prior. This year the sales were $218,493,391, which was about a 20% decrease from January 2017. Individually, Oakville’s median price dropped over 13% this January compared to the 2017 price of $988,500; and Milton’s median sale price decreased 4.53% from the $665,100 median price last year.
With a decline in the housing market, now is a great time to buy before the rates go back up.
If you are looking for a mortgage broker in Milton the Loewen Group can help you find what you need. For more information on the Oakville and Milton housing market, or to get started on your loan application today, please contact 289.813.7305 or firstname.lastname@example.org.