Mortgage rates are on the rise, like seemingly everything else, and it's changed a few things for hopeful buyers and homeowners.
I spoke with two different lenders this week. The best rate was a five-year fixed at 4.14% which amounts to a payment of $536.37/month per $100,000 borrowed.
Variable rates are 2.3% and sure to rise.
In addition, with the stress test, buyers need to qualify 2% higher than the rate they are getting. This means new borrowers will need to qualify at over 6% to secure a mortgage these days.
So, how's the market in Regina?
Well, the volume of sales was down in April. In the Regina Region, the number of sales in April 2022 compared to April 2021 was down by 11%. New listings were down by 6%, and inventory (number of available residential) was down by 15%.
But the average price went up. The price going up is partly due to limited choice for buyers. Typically buyers set out thinking there will be tons of great homes just waiting for them. They're disappointed when they realize it's not the case and the supply of nice homes is quite low. Faced with a lack of choice, buyers compete for the good ones and drive the price up.
If you like stats, refill your coffee, here are plenty of them
