Recent Changes in the Real Estate Market in Nova Scotia, Canada

Maximum amortization Periods have dropped from 40 years to 35 years to 30 years. This means larger monthly mortgage payments. As a result, it is more difficult for new buyers to afford a mortgage.

Nova Scotia prices have dropped 1% to 2% in the past year. A house that sold for $100,000 is now selling for $98,000 or $99,000. Even with the price drop, Nova Scotia housing is still overvalued by about 7%. This according to Benjamin Tal at a recent address on housing markets & local economic trends. Mr. Tal is a
renowned economic advisor.

Mortgage rates are expected to start rising in August. This will mean larger monthly payments and shrinkage in the number of people who can afford a mortgage. There will be downward pressure on prices of housing

These factors will likely keep the Nova Scotia market fairly stable, with no wild fluctuations up or down in the near future.

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4 Comments on Recent Changes in the Real Estate Market

JUN
16
2011

Wow, 40 and 35 year amortizations?  Thats amazing!  Here in the states we usually don't see them exceed 30 years.  I hope he's wrong about rising interest rates, but I have a feeling he's right.

2:37pm • #1
470,238 Points 24 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Donna,

Great perspective on the future market, to be honest the Fed's would we well advised to keep their fingers off the interest rates, until such time there are actual reasons to touch them, other than the banks.

By now the Fed's have messed enough with things that we do not see any real economic growth in pretty much any real industry...

3:42pm • #2
JUN
17
2011
868,446 Points 5 Featured Posts

Mark Carney is fairly firm on the rates, and they are not likely to increase in the near future. However, there's really only one direction and that is up.

 

11:42am • #3
107,696 Points 4 Featured Posts

James, Canada has tightened up on the amortization period.  I think this is to protect people if interest rates start to rise. Mr. Tal believes that there will not be a big market for higher interest rates and that will keep a bit of a lid on them.

Peter and Linda, I think the economic situation has been so delicate over the past few years that we are lucky things are not worse than they are. We are not out of the woods yet. There is light at the end of the tunnel, if the unions don't bring the country to its' knees.

Brian, Speculation is in favor of interest rates holding or rising slowly.

5:59pm • #4


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Donna Malone Homes and Property for Sale Nova Scotia

Bridgewater, NS

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