Market slow down is due to CMHC and their new rules is it nothing more than that or maybe....
So what is the West Coast market doing? Due to the changes CMHC (Canadian
Mortgage & Housing Corporation) made, as of April 19th, the market in
general has not necessarily come to a halt, however it has slowed. The
intention CMHC and the Canadian Government had was to slow the market down
in Toronto, Vancouver and Calgary. Not great for markets such as ours here on
the Island and other small communities, especially Kelowna and other parts of
Canada. The reality is, when interest rates go up, prices come down. When the
rules for qualifying for a mortgage are made harder to achieve, prices soften. I
agree, most of the retiree's most likely to buy here in our lovely retirement area isn't going to need a mortgage,
however the person buying their home does, therefore creating a ripple effect
all the way down to the first time buyer whom has essentially been pushed out of
the market entirely.
Combine all of this with finally getting some warm weather and the total misunderstanding out there, in general, of how the HST effects real estate and we have a slower than usual market.
The good news is, the savvy first time buyer, with great credit, will get off the fence and take advantage of some of the great opportunities available to them. I know you're out there!!!