Coquitlam Real Estate and Mortgage Broker Update/Forecast
Recent data released by the Real Estate Board of Greater Vancouver (REBGV) shows that attached home prices in Coquitlam are continuing to climb in 2018. Demand for condos and town homes is steadily increasing.
The same cannot be said for detached homes, whose prices and property values have actually fallen in 2018. President of REBGV noted “our detached home market is beginning to enter buyers’ market territory.”
Analysts forecast for 2018: Increased demand for condos and town homes, much quieter in the detached home market.
Coquitlam Pricing Index
With the average home in Coquitlam listing for almost a million dollars, steps have been taken by the government with the hopes of reducing real estate appreciation. It is important to note how these steps will influence mortgage brokers. Two of the main steps taken by the government are the stress tests, and the increase in foreign buyer taxes.
One of the most well known changes put in place by the government are the stress tests, which require applicants to qualify at a higher rate then they are received financing for. All mortgage applicants are now required to qualify at the Bank of Canada’s benchmark rate (currently 5.34%) or 2% above their contract rate – whichever is higher. Qualifying for a higher rate helps reduce the likelihood of mortgage default.
According to recent property tax data, there has been a steep dive in sales to foreign buyers in Coquitlam after the increase in foreign buyer tax. March 2018 marked the increase in foreign buyers tax from 15% to 20%.
How will this effect Coquitlam Mortgage Brokers?
It is expected that Coquitlam mortgage brokers will continue to be as busy as usual. All brokers should now be extremely familiar with the government’s stress test, and how it will affect clients’ borrowing potential and lender suitability. To combat the increased difficulty in securing funds, it is recommended to maintain close relationships with various B lenders. Many B lenders are now offering competitive products that suit AAA clients who may just not have what it takes to work with an A lender.
Mortgage brokers in Coquitlam should remain knowledgeable about Coquitlam’s housing inventory, as well as up date with developments currently in progress.
2018 Coquitlam Real Estate Forecast
It is expected that mortgage brokers in Coquitlam will be primarily working with applicants who are interested in purchasing attached homes such and condos and town homes.
Coquitlam is a very busy place for developers at the moment. All across the city there are brand new developments being built, faster than ever. With many of these developments being extremely close to public transport, purchasing a home in Coquitlam becomes even more enticing to people who commute downtown, to Port Coquitlam, Burnaby, and Surrey.
Noteworthy Developments for Coquitlam Mortgage Brokers
As the demand for attached homes in Coquitlam rises, more and more condos, town home, and apartment developments seem to be popping up. Marcon is one of the most active developers in Coquitlam. Currently, there are 17 new developments in process in Coquitlam, some of the most noteworthy are below.
- Wynwood Green | 585 Austin Ave, Coquitlam BC
- Hensley | 450 Westview Street, Coquitlam BC
- 567 Clark + Como | 567 Clarke Road, Coquitlam BC
- Brookmere | 530 Whiting Way, Coquitlam BC
- Simon | 717 Breslay Street, Coquitlam BC
- Regan West | 607 Regan Avenue, Coquitlam BC
- Union | 518 Whiting Way, Coquitlam BC
- Victoria | Victoria Drive, Coquitlam BC
- 430 Westview | 430 Westview Street, Coquitlam BC
- Meridian | 511 Cottonwood Avenue, Coquitlam BC
- Mont Bleu | Lougheed Highway, Coquitlam BC