We’ve recently spoke about the seller’s market in Markham and the GTA, due to the low inventory available. We also talked about some of the trends that will continue for 2017, based on the TREB report. What can you expect as a buyer or seller in Markham in 2017?
Increased interest rates
There have already been two increases in interest rates and analysts say this isn’t over. Because of the Trump effect and rise in the U.S. economy, interest rates are expected to rise. Interest rates will creep up at all the major lenders in 2017, which could mean an extra $20 to $100 on your monthly mortgage payment, depending of course the amount of mortgage you are applying for. This then affects what you will qualify for, as with an increased monthly payment, your housing costs will increase.
There will continue to be a lack of listings
If you are a seller, this is a good thing, as a lack of competition will spur more buyers towards your home. If you are a buyer, you are out of luck, as a lack of listings will mean less choice, higher prices and less bargaining power. This essentially has a waterfall effect, as less people are selling their homes, knowing that the higher price of homes means a larger mortgage, increased closing costs and real estate fees. There are quite a few less people making a lateral move and in fact, more than half of buyers are first time homebuyers in Markham.
Condos will start being the housing of choice
The huge demand for low-rise housing may start to wane, as buyers realize that high-rise living is more affordable and will allow them to be closer to their chosen location. There are a number of condo developments in the works in Markham, making this even more of an urban location than any year previous.
First time buyers have fewer choices
Because of last year’s mortgage rules, many first time buyers are not being approved at amounts that they were previously. With interest rates and home prices rising, this narrows their home search window. Starter homes are truly going to be starter homes, with more of an emphasis towards townhomes and fixer-uppers.
If you plan to be a buyer or seller in Markham in 2017, please don’t hesitate to contact me for more information on what to expect from the process. I can walk you through all of the changes and find you the right home or get you the best price for your current home.
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