New rules implement by the the federal government related to mortgage lending rules have injected uncertainty into the real estate market, the president of the Canadian Real Estate Association said Friday.

These  include an expansion of a stress test for borrowers that takes effect Monday, which could deter first-time homebuyers.  This could lead to uncertainty between both buyers and sellers.

''For first-time homebuyers, the stress test for those who need mortgage default insurance will cause them to rethink how much home they can afford to buy. The federal government will no doubt want to monitor the effect of new regulations on the many varied housing markets across Canada and on the economy, particularly given the uncertain outlook for other private sector engines of economic growth.''

Markets where the supply of available homes is tight, such as Durham Region, are likely to be affected.
The federal government said it introduced the rule changes in response to concerns about eroding affordability and overstretched consumers.

CREA's comments came as it released figures for home sales last month, which saw a 0.8 per cent increase nationally compared with August. Compared with a year ago, the number of home sales was up 4.2 per cent from September 2015.

Will Toronto and Durham Region become the new Vancouver? 

The number of newly listed homes on the market was up 0.5 per cent in September compared with August, while the national sales-to-new listings ratio stood at 62.1 per cent compared with 61.9 per cent in August. Thinking of buying or selling real estate in Durham Region (Oshawa, Whitby, Courtice, Brooklin, Uxbridge, Port Perry, or any part of Durham Region) Contact James Bryant or Patrick Bryant with any questions about real estate.  Patrick can be reached at 905-439-2033 and James at 905-441-7733 or email [email protected]

SUTTON GROUP-HERITAGE REALTY INC., BROKERAGE
SOLDBYBRYANT.COM

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