Possible current market frenzy in Toronto & Vancouver before the 5% down-payment door closes.
This month’s home sales in Vancouver and Toronto (Jan/Feb 2016) could spike as people rush to get in before the 5% down-payment minimum door closes. This market is about about to see a lot of condominiums selling for $499,999.
The government is altering the rules on residential real estate down payments, but at least, in this case, giving all interested parties a two months advance notification. The change by February 15th, 2016 could be causing a market stampede.
Along with this change in BC and Ontario, Ottawa is upping the minimum down-payment concerning government-backed loans from 5 to 10% on “the portion” of a home selling for more than $500,000. The average transaction easily exceeds that amount. in Vancouver and Toronto.
Rates are still low and the weather have unseasonably warm; which only amplifies sales figures.
In the past, the Tories implemented changes and somewhat rudely made them effective immediately. This time around, an adjustment period was factored in.
The new measures hope to cool and stabilize the Vancouver and Toronto markets. The Toronto Real Estate Board (TREB) announced in December a yearly sales sales record. Vancouver sales were up 40% over year and the benchmark price for a home rose 17.3% over 2015
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