June 2012 showed slight movement downward from May 2012 in Single Family Sales. Single family homes in Calgary equal all homes that are not in the condominium category. The sales dropped from May 2012 by 99 homes, and the median price slightly lowered from $436,000 to $430,000.
June 2012 showed slight movement downward in Apartment. Apartment condo sales in Calgary dropped by 46 condos from May to June, but the median price raised slightly from $252,750 to $259,000.
June 2012 showed slight movement downward for Townhouses. Sales in Calgary dropped by 36 condos from May to June, and the median price lowered slightly from $293,000 to $290,000.
“From now on buyers who purchase a home with a down payment of less than 20 per cent of its value are required to purchase government-backed mortgage insurance through Canada Mortgage and Housing Corporation.
Under the new rules, mortgages amortized over a period longer than 25 years will no longer qualify for that insurance, making it effectively impossible to get a highly leveraged mortgage of more than 25 years in Canada.” - CBC News
These new rules will affect the purchase amount you were able to make in the past. Prior to July 9th if you qualified for a purchase of $400,000, and a 30 year amortization, prior to these rules, you will now be able to qualify for a purchase of approximately $358,000.
If you were able to qualify for a mortgage prior with a 30 year amortization at $350,000 prior to July 9th, the new 25 year amortization will now qualify your purchase for $313,000.
This change makes me feel that the cheaper market may get forced up slightly with the start of these new rules as many have to adjust their purchase criteria to reflect their new qualifying amount.
