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3 Things That Could Affect Home Prices in 2017

Burlington Mortgage Brokers Ontario – Loewen Group Mortgages

As one of the leading Burlington mortgage brokers, James Loewen and the Loewen Group Mortgages team are constantly watching the mortgage market, preparing themselves for anything that could potentially help them help their clients.

No matter whether you’re going to be buying or selling a home in the new year, house prices are something that are going to be talked about a lot. For years, the Canadian reafl estate market has been thriving; could all that change this year? Maybe, but maybe not.

With the help of an article on CBC.ca, here are three factors that could potentially have an affect on housing prices in the new year:

  1. Federal Reserve’s interest rates in the United States

Believe it or not, the interest rate set by the U.S. Federal Reserve Chair has a significant impact on the mortgage rates we see in Canada. The reason for this is because mortgage lenders follow worldwide bond rates that are set in New York.

With this information combined with the announcement made earlier in December 2016 that there would be three rate increases in 2017, Canadians can certainly expect to see mortgage rates jump this year.

  1. Our own economy

As mentioned, Canadian real estate has been booming of late. However, with sales as strong as ever, an increase in rates combined with a potentially weaker Canadian economy could decrease the number of national buyers (domestic).

While predictions are always changing due to several factors, a British company called the Centre for Economics and Business Research is anticipating an economic stall at 2% for Canada.

  1. Construction

With a hot real estate market typically comes new construction, and that’s what we saw in 2016. While suburban homes continued to be built and sold quickly, we also saw a number of high-rise buildings break ground, especially in the heavily-populated and hot-selling markets of Toronto and Vancouver.

However, could things change in the new year? With so many new buildings being built, could the price to buy decrease? The article on CBC states that the Canadian Mortgage and Housing Corporation will be keeping a close eye on whether construction and prospective buyers stay in line.

Also, keep an eye on…

Government Regulation

The government proved late in 2016 that it isn’t afraid to step in when needed. In November 2016, the Canadian government introduced a new tax rule specifically for foreign buyers in Vancouver, and have also introduced stricter rules when it comes to mortgage lending, making it more difficult for prospective buyers to acquire a loan.

If you’re looking to buy or sell a home in the area, refinance a mortgage or renew one, contact some of the leading Burlington mortgage brokers for information on how they can help, such as the ones at Loewen Group Mortgages.

Whatever your mortgage needs are, we can help. Contact us today for more!

Source: http://www.cbc.ca/news/business/canada-real-estate-homes-2017-1.3913968

 

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