A large number of detached homes purchased in 2016 will be up for the five-year mortgage renewal this year.
You may be aware of the frenzy in the market re detached homes. With the pandemic on our heels, people want more space for privacy and are looking for home office space. They were met with lower interest rates and a higher supply of detached homes. Now, the supply of homes has shrunk ad prices are rising, so what does this mean? It means that buyers in the near future may get priced out of a home.
Mortgage Rates in British Columbia
The Real Estate Association for B. C is forecasting in 2021 that we will approach the home sales numbers of 2015 to 2017. BC was placed at the top of a list by Point2Homes as one of the most expensive places to have a mortgage. The study showed the following percentages of income going towards just to mortgages:
- Burnaby – 44.7%
- Richmond – 44%
- Vancouver – 43.8%
- Kelowna – 40.8%
- Langley – 40.5%
- Coquitlam – 38.5%
- Saanich – 37%
There is a significant unknown though. This is the impact on inherited wealth for some homeowners. Homeowners with inherited wealth will be better able to put higher amounts of income towards their mortgage payments.
The SilverBeam Weigh In
Here at SilverBeam Homes, we think the 1st 6 months of 2021 are going to be crucial. This is where the setting for the sales and price trends of the coming years will be set. If you are a homeowner who has been stretching to make your mortgage payment since you purchased your home in 2016, you may want to consider putting your home on the market now. Why now? Because with rising prices you may be able to clear your mortgage and also make a profit. You can then use this money to find a home that meets your needs better. For example, check us out to build the home your family needs to continue living comfortably in the new normal.