Canadian mortgage rules are expecting to tighten even more in the coming next 12 months due to the over heated property market. The Canadian government wants to keep prices from raising much faster then the inflation level to prevent a bubble from arising.
Economist and recent polls have ruled out the prospect of any price crashes in the Canadian Real Estate market.
Ten of 14 economists and strategists surveyed last week in Reuters' first poll on the Canadian housing sector answered "yes" when asked if they thought Ottawa would tighten mortgage rules within the next 12 months.
They expect home prices to climb just 0.1 per cent in the year to December 2012, and the same in 2013. That is down from a 0.9 per cent year-on-year increase in December 2011.
The finance minister of Canada, Jim Flaherty, will be releasing the new budget in March 2012. New regulations may be put in place to prevent prices to raise sky high. Some ideas being thrown around are raising the 5% down and shortening the amortization period.
Nine of the 14 economist agreeded the Vancouver Real Estate market prices will fall an average of 4% - 5% in 2012?
Vancouver prices have already started sliding. The outlook of the half-dozen analysts who ventured a forecast on that city was for a 3 per cent drop this year and 4.8 per cent fall in 2013.
The best advise I can give to any home seller or buyer in Vancouver is ... move sooner the later!
Sellers... The best time of the year to sell your home is typically during the spring and early summer, that's just around the corner. If home sales do drop in Vancouver sell high and buy low.
Buyers... Home prices are expected to drop only 4% - 5% in Vancouver and mortgage are going to be more difficult to obtain. An additional 4% on a sales price is not going to change the monthly mortgage amount drastically. But buying at current mortgage rates and rules will save you a lot over time if the mortgage rules/rates change in the coming months.
For more Real Estate advice and current market evaluation call The Aziz Group to help you sell or buy your home at the best value.