Mikaila Rhodes Victoria Realtor®

Cell: 778-679-1028 |

In the Fall of 2016 insured mortgages (less than a 20% down payment) were hit with the stress test, it was announced last week that conventional mortgages (20% or more down payment) will now be stress tested as well!

 

What is the mortgage stress test? 

 

It means that those mortgage borrowers with a 20% or more downpayment will have to qualify at the GREATER of the Bank of Canada posted rate (currently 4.89%) or the contract rate +2%. This decreases buying power by about 15-20% for those purchasers. The goal of OSFI is to ensure that Canadians can absorb higher payments for potential interest rate increases. 

 

Example:
Today if a client qualified for a mortgage of $500,000, that would be a purchase of $625,000 with a 20% downpayment.
On January 1, 2018 the same client would qualify for a mortgage of about $425,000, which would be a purchase price of about $535,000, with a 20% downpayment.

 

Stress testing for conventional mortgages will come into effect on January 1st, 2018, however there is still some ambiguity around exact details for dates. As it stands right now if you enter into a deal and have the lender approval prior to January 1st, 2018 you will qualify under the existing rules, even if the deal is completing in 2018. Some of these details are subject to change as more guildelines and regulations are rolled out. 

 

For more details on the impacts this could have on you and our market see the post from Spin Mortgage Here!

 

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My Greater Victoria Real Estate Market Update for the Fall is now available! 

 

As we enter Fall, Greater Victoria is seeing a consistently active real estate market, but we are very slowly inching towards more balanced conditions. A total of 640 properties sold in the Victoria Real Estate Board region this September, 18.1% fewer than the 781 properties sold in September last year. The ten year average for sales in September is 573 properties and the month still exceeded that average by more than 10%. Recently we’ve seen overall price increases level out, which can indicate slightly less demand, and inventory is building. After a small decrease and a consistent number of active listings over the Summer, there were 1,976 active listings for sale on the Victoria Real Estate Board MLS® at the end of September 2017, an increase of 3.1% compared to the month of August and 4.1% fewer than the 2,061 active listings for sale at the end of September 2016. August was the first month we've noted a decrease in HPI values since August 2015, the August HPI benchmark value for single family homes in the Victoria Core area decreased by 1.3% when compared to July, however other product such as condominiums in the Victoria Core has seen HPI values continuing to increase. We have also seen a strong focus on the lower priced end of the market, with condos, townhomes and single family homes listed for under $700,000 in high demand. Many of those properties saw multiple offer situations.

The Bank of Canada raised their interest rates for the second time in just a couple months by another 0.25% to 1%, the banks have now raised their prime lending rates to 3.20%. We could be seeing another increase this Fall, if you are thinking of buying and get a pre-approval the rates available for you at that time will be held for 90 days as you search for your new home. Last October the Canadian Government introduced "stress testing" to high ratio mortgages, less than a 20% down payment, meaning you are qualified for a mortgage at the Bank of Canada posted rate and the purchase price you qualify for is about 20% less than at our current interest rate. This may be introduced to conventional mortgages, more than a 20% down payment, in the new year, if you have any questions about how this could affect you feel free to contact me at mikaila@mikailarhodes.com or 778-679-1028.

There is an exciting new development coming to the market this Fall for home buyers that are looking to purchase in a new building Downtown. Chard Developments has announced their new building Vivid on the 800 block of Johnson St. will be priced at 8% under market value! There will be qualifications to purchase in the building such as an income of less than $150,000 and living in the home for two years after move in, they anticipate prices will be in the range of $275,000-$550,000. This is a great opportunity for first time home buyers to purchase in a quality development at a great price point!  

 

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Fall on Vancouver Island is so beautiful, and one of my favourite weekend getaways lately has been Salt Spring Island! With so much to do including local cideries, wineries, breweries, Salt Spring Island Cheese, galleries, the amazing Saturday market, exploring Ganges, and a wide variety of hikes, lakes and beaches it is the perfect place to enjoy a couple days with your favourite person!

 

To celebrate Thanksgiving and the beginning of Fall I am giving away a ONE NIGHT STAY at the Salt Spring Inn located in the Heart of Ganges, with a $40 Gift Card for Brunch! The Saturday market is even running until the last Saturday of October 

 

LIKE, SHARE & POST (for a bonus entry)

 

*Contest Rules*

 

1. “LIKE” my Facebook page Mikaila Rhodes - Real Estate Professional in Victoria
2. “SHARE” and “LIKE” the Facebook post
3. OPTIONAL for a bonus entry: “TAG” a friend you would like to spend the weekend with on Salt Spring!

 

Good luck and WINNER will be dawn October 16th!

#Giveway #RhodesRealty #ExploreVancouverIsland #yyjrealtor

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Victoria Real Estate Market Changes Tempo for Autumn

October 2, 2017  A total of 640 properties sold in the Victoria Real Estate Board region this September, 18.1 per cent fewer than the 781 properties sold in September last year.

 

“We can certainly feel the difference in the current market when we compare to last year’s record breaking numbers. Last year the pace of the market was intense, there was a lot of pressure on pricing and demand,” notes Victoria Real Estate Board President Ara Balabanian. “Now the tempo of the market is trending slowly – very slowly – towards more balanced conditions. Recently we’ve seen overall price increases level out, which can indicate slightly less demand, and inventory is building.”

 

There were 1,976 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of September 2017, an increase of 3.1 per cent compared to the month of August and 4.1 per cent fewer than the 2,061 active listings for sale at the end of September 2016.

 

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in September 2016 was $742,200. The benchmark value for the same home in September 2017 has increased by 10.9 per cent to $823,100.

 

“Simply because we’ve seen sales drop from last year is not dire or unexpected news for our local real estate market.” adds President Balabanian. “The ten year average for sales in September is 573 properties and the month exceeded that average by more than ten per cent, which indicates we’re still in an active market. And of course there are neighbourhoods that are still tracking up in terms of value from last year. It’s for reasons like these that now more than ever it makes sense to seek the assistance of a local REALTOR® to sell or buy your home.”

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