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Real Estate Still Considered a Buyer’s Market Despite Rate Increase
Real Estate Still Considered a Buyer’s Market Despite Rate Increase
A review of recent surveys of Canadian consumer sentiment indicates most people continue to view the job market and overall economy as positive.
sanfrancisco,
CA,
United States of America
(prbd.net)
02/06/2011
A review of recent surveys of Canadian consumer sentiment indicates most people continue to view the job market and overall economy as positive. These same surveys report consumers continue to view real estate to be in a buyers’ market phase. Experts are voicing concern there might be a turn in the market, which favor sellers. As younger buyers are entering the market, there is an increase in demand for lower price homes and condominiums thus putting a pressure on inventory in this sector. Chinese and other Asian investors seeking a safe haven for investment are purchasing homes in the upper price ranges leading to a smaller inventory in the high-end price range.
The depletions in inventory justify continued inflation in home prices. Basic laws of supply and demand counter concerns recently voiced by pundits that the Canadian real estate market is entering an American-style bubble.
Earlier this month, several of the larger banks announced an increase in mortgage interest rates ahead of the traditionally bustling spring real estate buying season. At the beginning of April rates rose between 0.15 to 0.40 basis points. As of mid-April, these rate increases appear to have done little to dissuade consumers from submitting mortgage applications. Continued consumer demand for mortgages appear to be driven by the desire to secure a loan prior to changes in mortgage lending rules that will make it more difficult for new buyers to obtain a residential mortgage.
Given the broad range of interest rates in the market, more stringent qualification criteria for new homebuyers and pressures on inventory in some market segments, industry experts advise consumers to take the time to shop lenders in order to secure the most favorable term for their home loan. The lending market is rapidly changing thus the potential exists for people to become overwhelmed by the time investment required to track the changes in the market. Many consumer advocates recommend enlisting the services of a reputable mortgage broker since brokers possess the expertise in evaluating the loan terms of a multitude of banks.
This familiarity allows brokers to match consumers with the best loan for their financial situation. The broker facilitates the qualification process, preventing issues with financing when consumers make an offer on a home or at close of the sale.
For additional information visit: http://hamiltonmortgagebrokers.org/
Email: http://hamiltonmortgagebrokers.org/contact-us/