Reused by permission of the Real Estate News
Read the entire August Press Release from WinnipegREALTORS® here.
What stood out in August was the performance of the higher end of the market where residential-detached sales above $500,000 were up 32% over August 2016 and 7 sales eclipsed 1 million dollars in value. There were some other high end commercial sales with a motor inn and apartment complex each selling for over $1 million.
“August demonstrated demand and confidence in our local market remains strong by virtue of the strength of the upper end market,” said Blair Sonnichsen, president of WinnipegREALTORS®. “It also showed the higher stress test requirement on insured mortgages is preventing a number of buyers from achieving their dream of homeownership and in some instances keeping existing owners from making their next step to another home.”
He added,” With this week’s Bank of Canada interest rate increase to 1% and the federal government considering placing a new stress test on uninsured mortgages, it will make purchasing a home even more difficult for buyers.”
Simply put, the new stress test on uninsured mortgages will require low-risk borrowers to be approved at two percent above the rate offered to them by their lender.
“You need to be talking to your REALTOR® about the options available to you in our local real estate market, “said Marina James, CEO of WinnipegREALTORS®. “REALTORS® know the market and what alternative property types may be possible if your first choice is not attainable.”