Royal LePage, one of Canada’ largest real estate agencies, announced its third quarter report recently and has reviews the Ministry of Finance was probably looking for when they dropped the maximum amortization period for insured mortgages from 30 years to 25 years.
Despite the sale prices for a detached Canadian home is up, there’s been a drop in sales, specifically from first-time home buyers which as damped the outlook in months to come.
According to the Royal LePage report. Although sales were positive in July, they fell nine percent in August and “we are expecting September to show a decline as well,” said Phil Soper, president and chief executive of Royal LePage as said in the report.
A big reason for the decline: a drop in first time home buyers. With the new regulations, first-time home buyers aren’t able to afford loans they once regularly could have.
“First-time buyers will adjust to tougher mortgage qualifications,” Soper said. “The dream of homeownership is very much alive among young Canadians. They may remain renters for some time as they save; some will opt for less desirable neighbourhoods and some will purchase smaller homes,” added Soper.
“In the meanwhile, we will feel their absence in national sales statistics.”
Edmonton Alberta homes for sale had its prices rise on average to 7.5 percent in the third quarter.
