Stress Test Stressing You Out?
Due to a strong provincial economy the housing market on the North Island is still thriving. The average price of a home in the Comox Valley in February 2018 was $496,738 up 18% over this time last year. While in Campbell River the average price was $409,540 up 16%.
Currently, we are still in a “Seller’s Market” with sales to listing ratios at 69% for the Comox Valley and 81% for Campbell River. Market demand is strong and multiple offers are frequent! However, due to the affordability issues for consumers, how long can this continue?
Recently, a new mortgage stress test has been implemented, which reduces the purchasing power of consumers. In addition, interest rates are now rising, further diminishing the affordability of a home.
There is hope for prospective buyers as plans such as the Kensington Development (discussed last month) and recent initiatives implemented in the BC Governments budget would bring the demand and supply sides of the market into a more equilibrium state.