New Canadian mortgage 'stress-test' rules that came into effect in June might have motivated first time home buyers to enter the market in May before the change.
Volume sales for the month reached a new all-time record of $112 million, a 166 per cent increase over May 2020 when sales and listings plummeted due to the pandemic.
Sarnia-Lambton Real Estate Board President Rob Longo said the current minimum qualifying rate of 4.79 per cent, changed to 5.25 per cent June 1.
"No matter what the interest rate was, even though the actual interest rate you would be paying would be two per cent, or two-and-a-half per cent, you would have to qualify for that mortgage at 4.79 per cent as if you were paying that much interest," said Longo. "That's just a safeguard that the government had put in place in case mortgage rates do go up. They wanted to make sure everyone can still afford to stay in their home."
Longo said this May there were 222 residential sales, up 88 per cent compared to 2020, and 249 new listings, up almost 55 per cent from last May.
On average, he said homes sold for 108 per cent above asking in about eight days.
The median sales price for the month was $430,000.
