“If we see further evidence that there’s excessive demand in the housing market, or that there’s an indication that people are taking on obligations that they will not be able to handle in the future when interest rates do rise, then we’ll take some action,” Flaherty told the CTV.
Historically low interest rates intended to spur economic activity have pushed demand for homes higher resulting in sharp price increases in many Canadian markets. Near record level activity in our largest and priciest markets, Vancouver and Torontohas helped push the average selling price of a Canadian home to $368,665 (according to the Canadian Real Estate Association) , roughly twenty-percent higher than it was at this time last year.
“The likely action we would take is to increase the size of the down payment from five percent to a higher amount and probably, once again, reduce the amortization period. So, bring it down from a maximum of thirty-five years to something less than that,” Flaherty said.
I’m going to guess that December’s sale numbers will continue to fuel concern and bring us closer to seeing at least one of these changes implemented. Also uncertain is whether these changes would take effect immediately or if they would be effective at some future date.
Thanks to @JenCT for the heads up.
I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call or email.
Real estate geeks can follow our daily updates on Twitter @norm_fisher.
Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.
Royal LePage Vidorra