Soft First-time Winnipeg Home Buyer Sales in April 2017
30th May 2017
Soft first-time Winnipeg home buyer sales in April 2017 are the reason Winnipeg home sales were down 5% from April 2016, according to the WinnipegREALTORS® Association.
Unit sales in April 2017 of 1,300 were down 5% from a record April in 2016. For residential-detached properties under $300,000 there was a 15% decrease in sales activity in comparison to last April. WinnipegREALTORS® identified the new stress test on insured mortgages and its impact on buyer qualification as the primary concern.
The Canada Mortgage and Housing Corp. says the annual pace of new housing starts fell 15 per cent in April 2017 compared with March 2017. The seasonally adjusted annual rate of housing starts was 214,098 units in April, down from 252,305 in March.
In the fall of 2016, new housing regulations expanded stress tests making it harder for nearly 20% of new home buyers to qualify for mortgages. A more stringent mortgage stress test was put in place to ensure Winnipeg home buyers can afford mortgage payments should the interest rates rise.
Vertuity Mortgage quickly adjusted to the new qualification requirements and prepares buyers for the new stress tests. Winnipeg home buyers are having to change their expectations on a case-by-case basis. Some home buyers still qualify for the homes they want while others have to lower their goals for a new home due to the new affordability guidelines.
The first-time Winnipeg home buyer has expectations on what he or she wants to buy. But when they find out how much they can afford, they may be forced to make some difficult decisions. Other payments and expenses may have to be reduced or eliminated to afford a new home. New car purchases and vacations will be put off in favor of the new mortgage.
Vertuity Mortgage reviews the qualifying requirements with each potential Winnipeg home buyer. Each client has a unique situation and the new affordability guidelines affect each client differently. The mortgage rule changes affect nearly every potential borrower.
Vertuity Mortgage works with a broad base of lenders to find the right mortgage based on each customer’s needs. Vertuity Mortgage assesses each Winnipeg home buyer on a case-by-case need to make sure qualifications are met. Rules changes mean the process is more complicated and harder to understand. Vertuity Mortgage takes care of the hard work so the client can focus on finding the right home.
WinnipegREALTORS® is a professional association representing over 1,875 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market.