July 2008 turns up the sales volume. While not the busiest month in 2008, it certainly was busier than July 2007. Residential sales were up 22% over last year. This is a sharp contrast to previous months in 2008. This makes me wonder “why?”.

Is this rush related to changes coming early fall from finance Canada? Should be no secret to most of us by now that the Finance Department will stop guaranteeing 40-year and zero-down-payment mortgage loans starting Oct. 15.

How buyers finance their home is not data that we as Realtors file and keep on hand for tracking. All we can do is pool one another as to the frequency that we experience writing or viewing offers to purchase that indicate “zero” down or disclose that they are amortizing over 40 years. From a buyers representative perspective I am not sure that it would benefit the buyer to disclose every detail either. If some one is buying a home and their only amortization that will work for qualifying is 40 years that may raise concern for a seller’s representative.

Probably the best people to poll would be mortgage specialists and see how many closings occurred with 40 year amortizations and “zero” down and whether or not those numbers are above normal.

We should be looking closely at August. Will the trend continue or will a dip follow the rise that occurred in July.

Your Friend in Real Estate,

Patrick Galesloot.