Our Take on The Market for Todays Buyers -November 2017
As you may know,
the banks will be introducing new lending rules in January 2018. Buyers with under 20% down have been qualified under these rules for some time already. What this means is that buyers will have to qualify at 2% higher than the benchmark rate. They will still loan at the benchmark rate. The talk seems to say that buyers will qualify for about 17% less. There is a lot of speculation in our industry that prices will adjust downward. This remains to be seen and may take until March April and beyond to take effect.
If this is true it is good news for buyers with good incomes. Opportunity to buy at lower prices than the last couple of years.