Looking to buy or sell a home in the Edmonton area? Good news! Edmonton’s real estate market is demonstrating some noticeably positive activity. While much of this bounce-back can be attributed to the province’s re-opening, buyers and sellers are eager to take advantage of the many perks our current market has to offer.
1. Ultra-Low Interest Rates
With Canada’s interest rates sitting at a historic low of 0.25%, the Edmonton real estate market has seen an influx of buyers eager to secure an affordable fixed or variable mortgage at a great rate. While the Bank of Canada has cut its key overnight interest rate three times in light of COVID 19, experts predict that rates will stay low even as the pandemic ends.
2. A Buyers (and Sellers) Market
When it comes to buying, the Edmonton market is showing some pretty favourable conditions. In addition to record-low interest rates (above), reduced home prices paired with an increase of inventory have resulted in the ultimate buyer’s market. As a result, buyers are taking advantage of easier negotiations, quicker closing dates, seller concessions and much more. Here too, sellers are benefitting from the recent influx of buyers eager to enter the market in search of a great deal.
See our previous post: Alberta’s Relaunch Strategy: What You Need to Know
3. Keeping You Safe
Edmonton real estate agents are also taking calculated measures to protect the health of their clients and themselves – meaning buyers and sellers can now take to the market with confidence, knowing they will be safely taken care of. These measures include virtual tours and meetings (as opposed to in-person), maintained social distancing, cleaning and sanitation processes, electronic documents and strict protocols for buyers and sellers when it comes to home showings.
See our previous post, Home Buying and Selling During COVID-19, the Real Estate Council of Alberta and/or the Alberta Real Estate Association for more information.
4. Tighter Restrictions On the Horizon
As a means of protecting home buyers and the economy, the Canadian Mortgage and Housing Corporation (CMHC) has opted to tighten its insured mortgage requirements. Under these new mortgage rules, the minimum credit score required to qualify for a mortgage will be increased from 600 to 680, while GDS and TDS ratio will also be tightened from 39 to 35% and 44 to 42%, respectively. In light of these changes, buyers will likely be able to afford less home – encouraging many to take to the Edmonton market now, before they take effect.
Note: The Terry Paranych Real Estate Group is open for business! While we will be adhering to social distancing recommendations to ensure your health and wellbeing, we will be happy to meet virtually or on the phone to answer any questions you may have regarding buying or selling your home.
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