top of page
  • Susan

What Do All These Changes Mean?

Undoubtedly, the housing market is always a topic of conversation. It’s been a wild ride the last few years, and consumers aren’t sure what to expect next. Many first-time buyers wonder if they’ll ever get into the market. We at the Jennifer Jones Team are here to help both buyers and sellers, and know while information is key, understanding what our clients need and listening to those needs is what allows us to propel them to a successful transaction.

So what’s coming next in the housing market? 2017 began red-hot, with almost any listed property receiving multiple offers once the sign was in the yard. Once the rumblings of the government measures to cool the market were heard mid-March –including a foreign buyer’s tax – the once red-hot market did indeed start to cool. We saw a marked drop in the number of transactions taking place, to the tune of approximately 40%. The market started a definite downward trend in April, with days on market increasing, inventory bulging, and prices dropping.

The change meant it was more than a little chaotic over the summer. Once August and

September arrived, the new normal of the market started to settle in. Buyers started to

come out of hiding and realize they may have an opportunity after all. In fact, our team saw a marked increase in first-time buyer activity, and helped many of them get into homes of their own.

As for selling, while definitely at a slower pace and slightly lower prices, on average, homes prices are still up 14% than the same time in 2016.

Just as the market seems to have adjusted to a new normal, the government

decided to mandate stress tests for all new mortgages, including “B” lenders, or lenders

other than banks. With historically low interest rates and two hikes thus far in 2017,

many believe interest rates may continue an upward trend throughout 2018.

When does this new practice of stress testing begin? January 2018.

What’s the purpose of stress testing, and what does that mean, anyway?

As of January 2018, lenders must pre-qualify buyers at not only the current interest rate, but an interest rate 2 points higher. This means and approval to purchase a home worth $800,000 currently, as of January 2018, that approval then qualifies to purchase a home for $600-650,000 instead. There’s quite a difference in purchase power between those two numbers, obviously.

What does all this mean? It means that now is the time to buy and sell, and it’s imperative to hire the right agent to handle the transaction. No matter what, people will always buy and sell real estate. There will be a new baby on the way, a job transfer, a need for downsizing, or just a plain old move to something people like better. Whatever your real estate needs, we’re skilled and ready.

The Jennifer Jones Team realizes the importance of pricing sharp in a market like this, and we continually watch the market daily. From our gift of staging your property, to our full color brochures and fabulous marketing, we get the job done. Do you need help getting your property ready for market? No problem – we have a list of trusted professionals we’re happy to refer you to as well. Not sure who to talk to about the best mortgage? We have mortgage brokers ready to help. The time is now to buy and sell with us. Our team works together to ensure exceptional service for our exceptional clients, and we look forward to assisting you with all of your real estate needs.

*Please note, this blog is not intended to solicit those home buyers or home sellers that are under a current agency agreement.

11 views0 comments
bottom of page