Property sales in Canada are on an upward trend and it is likely that consumers have gained control over B-20.
Sales statistics from Canadian Real Estate Association for July show nationally home sales rose 1.9% over the previous month and according to REMAX's regional executive vice president, this means that buyers have finally adapted to stricter qualification rules.
"It seems certain that consumers are slowly getting used to the B-20 mortgage qualification guidelines," said Elton Ash. "It happens a bit later than we thought, and that seems to be the reason why stock levels are falling in the Toronto area."
Although it is a difficult pill to swallow for many, the Canadians realize that in order to become homeowners, they will have to settle for less house.
"What's going on is that they're adjusting their expectations," he said. "In other words, where they may have previously qualified to buy a house of $ 850,000, they are now looking at a house of $ 750,000 – not that they're looking for secondary funding – because the only lenders who are not tied are by B-20 lenders and private lenders – it reduces their overall expectations about what they can pay in the type of home they are looking for. " The real estate market, it seems, is finally in balance and Ash expects that he will endure the first quarter of 2019. He added that last year's record sales volume and price increases were an anomaly that people should pay attention to before they make something
"When you measure against a record year on an annual basis, what's negative seems actually positive", Ash. "The entire B-20 qualification stress test for mortgages was introduced to slow down the market, and that is certainly what is happening, and what we are starting is a more traditional market situation where it is generally in balance. housing market extends to what they were, and multiple supply situations have disappeared across the board, even though they occur in certain situations in Toronto. "
If Ron Butler of Butler Mortgage previously told MortgageBrokerNews .ca, the doom and gloom pervasive discussions about real estate in Toronto ignore a salient fact: after worrying, the market returns to the normal course of events.
"It comes down to a record record all the time," Butler said. "It's below the highest peak, so everything that's going to happen this year is that it will look like the numbers in 2015. Sales are still going on, they just do not happen at a record level like they were years ago."