Here’s A Recap On Trends In The Durham Region Real Estate Market In December 2017

As we end 2017, the market closes with far more stability than when it opened but don’t let that fool you. The Durham Region real estate market overall has still maintained its strength, beating out previous years.

 

December Market Recap

In December, housing prices level out dramatically compared to the beginning of the year which saw record home prices and moment in Q1. Even with some stabilization there was still a year-over-year increase in December for both number of sales and average home price throughout the Region.

 

Overall Market Predictions for 2018

The future trends experts at RE/MAX are predicting that home prices will continue to rise in 2018. Albeit more steadily with an overall jump of 3% by year-end with the overall demand remaining high.

 

The affordability of the Durham Region real estate market compared the western GTA will continue to make this area appealing for buyers. Move-up buyers will generate demand with the previous generation of first-time home buyers looking to cash in on the equity in their home and move up to a bigger investment.

 

The economy in the Region and ongoing infrastructure projects like the 407 extension and GO Transit projects will continue to drive up home prices and increase desirability to live, work and play in Durham Region.

 

Predictions for January 2018

Opening 2018, the markets’ real estate professionals are gearing up to navigate the implementation of new mortgage rules.  These new rules require borrowers to undergo a stress test. Even borrowers with a 20% down payment will be put to the test.

 

What is a stress test? Stricter lending rules will assure mortgage lenders that the borrower can still make their payments should the interest rise in the next 5 years. The typical test is completed by factoring in a 2% hike on your negotiated rate or 4.89%  (whichever is higher_.

 

For example, if your current rate is proposed to be 3.09% your stress test would be performed at a rate of 5.09%.

 

Durham real estate agents are eagerly awaiting how this will play out. We will keep you updated on market impact throughout Q1. Stay tuned!