As we enter the fall season, the real estate market is changing—so let’s talk about it. The fall market generally picks up some speed: summer holidays are over, kids are back in school, and people want to get settled before the colder weather and holiday season arrives. This year, we have seen a few changes that impact the fall market more than usual, so let’s dive in.
One of the main concerns on almost everyone’s mind is interest rates. We have continued to see interest rates settle down, falling three-quarters of a percentage point since June 2024. This trend seems to be paving the way for what we can expect for the remainder of the year. As a result, the market has become more favorable for buyers, who are becoming more active and starting to look more seriously. The current gap in the market—where rates are decreasing and housing prices have yet to spike—presents a great opportunity for prospective buyers. Inventory is picking up, and interest in local markets is growing. If you’re considering selling within the next six months, now might be the right time to have an evaluation done on your home.
Entering the market as a first-time buyer is challenging due to the affordability of homes. A recent announcement regarding the reintroduction of a 30-year amortization period for first-time buyers will significantly impact affordability, allowing many buyers the freedom to expand their budgets. On average, this change is estimated to provide buyers with approximately $75,000 extra in purchasing power. Be sure to talk to your lender or bank to get specifics on how this could impact you and how it might change your pre-established budget!
Previously, mortgage loan insurance for buyers with a down payment of less than 20% was capped at a price tag of one million dollars. For those unfamiliar, mortgage loan insurance is required for down payments under 20% to protect lenders in the event of a default. In an effort to make the real estate market more affordable, the Finance Minister has announced an expansion of this cap to $1.5 million. This change will enable prospective buyers to obtain mortgages for homes up to $1.5 million more easily, without the requirement of a 20% down payment. Be sure to consult your lender to see how this could impact your home search!
The spring market tends to be the busiest and most competitive time for real estate. With these new developments, now may be the right time to get ahead of the spring market competition. Contact your lender, get a fresh evaluation done, and determine if now makes more sense than you think!
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