This is often a very frusterating time of year for REALTORS. We are startng to get buyers coming to us as the weather improves, but the new listings are always lagging behind demand. If you're thinking about selling your home in the next few months, this is a great time to put it on the market. The buyers are getting ready and the interest rates are still low.
The new rules introduced by the Federal Finance Minister shouldn't have a big impact on our local market. One area of concern is the new rules which MAY see a buyer of a non-owner occupied property be required to come up with a 20% down payment instead of 10%. I said may, since two mortgage brokers I spoke with suggested that there may be some flexibility in this rule which was mainly created to discourage people from buying multiple properties and then flipping. In the major centers this has led to speculation in the real estate market and has often created unrealistic housing prices. This has been an issue in the Vancouver condo market the past few years.
The market in Vancouver has very little resemblance to our's here in Moncton so there may be some relaxing of the new rules for our investors here. We won't really know how this will play out until the rules come into play and the banks decide what they are prepared to do. In the meantime, if you are planning on buying an investment property, or a cottage for that matter, give me a call before the 19th of April and we will beat the deadline.