A Review of Housing Market Status
The year 2012, has been a rough phase for housing market in Canada, though there were predictions made at the onset that the housing prices wailfall by a minimum of 25%. The prediction was not true to a great extent, in spite of low sales recorded in most of the provinces of the country. The market should not plunge to a great extent in the New Year to come as well.
There are following reasons for the Housing Market to have a strong footage in 2013
€ Affordability will be greater than before: two decades back, the cost of homes were almost half of what they are today, but the interest rates as high as 125 for a term of 5 years. And this contributed to a larger monthly expenditure than it is today. At present, the interest rates are 3% so the even if the prices have gone up the monthly burden on a home owner is not as high as it used to be before. Conclusively, the houses are more affordable than they used to be.
€ Buying is easier than renting: People who can afford a high rent can also make efforts to buy a house because in the present times, the rent is much higher than it used to be before.
€ The sales report: When the figures of sales are compared as on 30thNovember of 2012, 2011, and 2010, it would be quite evident that the average number of houses sold is not wide apart from each other. They fall quite close to each other.
€ Debt to income ratio: Even though the debt to income ratio in the country is not too encouraging, yet, with a low interest rate of 3% things do not seem to be too bad for the market.
€ Insignificant effect of Changes in mortgage rules: Changes in mortgage rules were the most debatable topic in the country when they were introduced, yet for many it meant that they would get rid of paying the loans earlier in life than it was before.
€ Interest rates to be stable: Experts opine that the interest rates should not change for at least another couple of years. Looking at this prediction many who have been waiting to buy a home can actually get prepared to buy one.
€ No major changes announced for the next year: As of now there is no major announcement coming from the government about bringing in changes in the Mortgage rules, so the turmoil in the market is probably over by now.
Summary:
Housing Market should show a positive trend in the year to come. S it is the interest rates are not too high to create a huge monthly burden on the buyers. There is no reason for people to wait any more for buying a house. Changes have already been introduced and all one needs to do is to get prepared for buying a house at the given terms and conditions. Amid all this the breather is the low interest rate.
There are following reasons for the Housing Market to have a strong footage in 2013
€ Affordability will be greater than before: two decades back, the cost of homes were almost half of what they are today, but the interest rates as high as 125 for a term of 5 years. And this contributed to a larger monthly expenditure than it is today. At present, the interest rates are 3% so the even if the prices have gone up the monthly burden on a home owner is not as high as it used to be before. Conclusively, the houses are more affordable than they used to be.
€ Buying is easier than renting: People who can afford a high rent can also make efforts to buy a house because in the present times, the rent is much higher than it used to be before.
€ The sales report: When the figures of sales are compared as on 30thNovember of 2012, 2011, and 2010, it would be quite evident that the average number of houses sold is not wide apart from each other. They fall quite close to each other.
€ Debt to income ratio: Even though the debt to income ratio in the country is not too encouraging, yet, with a low interest rate of 3% things do not seem to be too bad for the market.
€ Insignificant effect of Changes in mortgage rules: Changes in mortgage rules were the most debatable topic in the country when they were introduced, yet for many it meant that they would get rid of paying the loans earlier in life than it was before.
€ Interest rates to be stable: Experts opine that the interest rates should not change for at least another couple of years. Looking at this prediction many who have been waiting to buy a home can actually get prepared to buy one.
€ No major changes announced for the next year: As of now there is no major announcement coming from the government about bringing in changes in the Mortgage rules, so the turmoil in the market is probably over by now.
Summary:
Housing Market should show a positive trend in the year to come. S it is the interest rates are not too high to create a huge monthly burden on the buyers. There is no reason for people to wait any more for buying a house. Changes have already been introduced and all one needs to do is to get prepared for buying a house at the given terms and conditions. Amid all this the breather is the low interest rate.
Source...