As many of you head off to enjoy summer vacations, we take this time to look at the market performance In our area, Pinedale/Forestwood neighbourhood, in order to keep you well informed and up to date with the real estate market.
In early May, 2018 the Bank of Canada announced another increase in the mortgage stress test interest rate used for those seeking a home loan.
The rate increased by 20 basic points, from 5.14% to 5.34%. Previously only those seeking an insured mortgage ( paying less than 20% of a down payment ) were required to go through the stress test.
But os of 2018, all homeowners must pass.
The stronger stress test is meant to ensure that borrowers can still keep up with their mortgage payments as interest rates are rising.
The strict rules mean more first-time buyers will have to wait longer and save up more before diving into homeownership, or seek other ways to boos their downpayment, most often asking help from parents.
If you are contemplating a move this year, just call or email me and I will make sure that you receive detailed related information to help you make an educated decision that most support your needs.
Our neighbourhood continues to be a highly sought after location, for its preferred lot sizes, proximity to HWY and all family life conveniences.
The buying market are seeking out well presented homes, which are often quickly receiving an offer. This is a key component to realizing the maximum value for our sellers.
In June our neighbourhood had 41 sales, with average days on the market between 27-31 days.
In general, we had less listings on the market, fewer sales and lower prices compared to June 2017.
However, it is important to keep in mind that 2017 was a very unusual year for real estate to say the least. Therefore, to compare 2018 performance to 2017 is not a fair perspective on real estate in general.
Now to the real numbers & total transactions for June 2018. Sales in our neighbourhad included:
3 condo apartments, with average sale price $ 493,000
5 condo townhouse, with average sale price $ 481,000
10 freehold townhouses, with average sale price $ 583,000
4 detached 2 story home, with average price $ 979,000
3 detached back split homes, with average sale $ 840,000
5 detached side split homes, with average sale $ 714,000
6 bungalow homes, with average price $ 752,000
I semi detached, with average price $ 555,000