October continued the trend of slower sales volumes (down 27% YTD) with prices up from June/July/August levels but down slightly from September. Average prices for the month were $1,202,000 (October) vs $1,215,000 (September). While prices are relatively flat from September, much of this price stability was generated from some high valued sales in October. We know this from looking at Median sales values which are down to $950,000 (October) from $1,070,000 (September). Overall, values are still up +11.7% vs the 2016 Average.
In October much media attention was given to OSFI tightening lending restrictions for uninsured mortgages (impacting borrowers with ≥20% down). Borrowers will now have to qualify on 200 basis points above their rate hold or at the bank’s 5 year posted rate for those with a <5 year rate. Most lenders are implementing these rule changes ahead of the January 1, 2018 cutoff. We are currently seeing the last of the borrowers buying under the old requirements. Many expect these lending changes will further dampen the market, but many debate the length and size of the impact. Anecdotally, I have found most buyers are being more cautious and many are sitting on the sidelines to see the impact of the changes on home values.