In the coming months we will detail the 2025 market activity however for now let’s look back. Here are some of the recent changes:
- After historical low mortgage rates from the start of Covid to Q1 2022 we have seen the Bank of Canada rate ride the roller coaster from .5% to 5% and during 2024 5 declines to the current 3.50%
- Federal policy now allows an insured mortgage up to $1.5m from previous $1.0m. This comment on the news came from the Dept. of Finance --> “This is helping more Canadians, especially younger generations, get those first keys of their own” These are the people trying to solve the affordability issue!
- New construction and new condo construction buyers have a 30 year amortization available with 1st time buyers permitted to use 30 year amortization on resales
- The stress test will not be used on mortgage renewal if you maintain the amortization period and do not increase the loan balance
Sold residential transactions in HRM for 2023: 4890
Sold residential transactions in HRM for 2024: 4738
These were the first 2 years that ended with under 5000 annual sales since 2014 (4727 sales) & 2015 (4897 sales). For comparison sales in 2021 were 7086 and 2020 were 7134.
Do those numbers mean anything to you? How about this:
Average sale price during 2014-15 - $277,437
Average sale price during 2023-24 - $561,112
Is it possible that over the next 10 years the local “younger generation” will have to worry about getting an insured mortgage at a property valued at over $1,000,000? My guess is that 10 years ago if I had of suggested your house would double in value over the next 10 years you wouldn’t have taken that comment to serious.