As we've seen for the last several months, Kelowna real estate sales volume and sale prices have recovered in a healthy fashion. This has happened not only in Kelowna but other parts of the country as well.
Finance Minister Jim Flaherty has recently gone on record saying that if prices start to climb too high and too fast, the federal government will put a damper on by increasing minimum down payments and decreasing amortization periods. Right now the minimum down payment for insurable mortgages is 5% and the maximum amortization is 35 years. The Bank of Canada has vowed they will keep lending rates low until at least the middle of this year.
Some will say this is a bad thing. However, if you look at these possible changes and all the ramifications (the biggest being that some people won't get into the real estate market and be over their heads when rates go up, as we know they will) it will actually help contribute to a steady, stable, real estate market for everyone!
Full article: Cure for housing market carries risk
Talk to you soon...
Paige
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