REAL ESTATE IS A LOCAL MARKET! WHAT DOES THAT REALLY MEAN?

Every day we are bombarded with news and information regarding the real estate market. The Canadian real estate bubble is about to burst. Canadian homes are 20% overvalued. There will be a soft landing in real estate. Canada is due for a major price correction. You’ve all heard these comments time and time again over the last couple of years.

The crazy thing is all these statements are true! The problem is these are just the headlines. These headlines sell newspapers. If you read the whole article it will refer to specific markets. When talking about overvalued homes or overheated markets they are usually referring to housing markets in the major centres such as Vancouver, Calgary, and Toronto.

Let’s look at the Hamilton-Burlington real estate market for example. Our local REALTOR® association reports sales statistics on a monthly basis. They report such things as average price increases/decreases, number of sales increases/decreases, what is selling better this month, detached homes or condos. This is all great information but this data represents a large geographic area.

What you have to remember is the real estate market can be different in each area. For example: Ancaster vs Burlington, Dundas vs Hamilton, Lower City vs Hamilton Mountain, Stoney Creek vs Grimsby. It can even be different from neighbourhood to neighbourhood.

So what is really happening in YOUR neighbourhood? You need to call one of our Coldwell Banker Pinnacle Real Estate professionals to analyze all the statistics and information that is floating around out there. They will provide you with all the necessary information to help you make the right decision when it comes to buying or selling real estate.

BUYER’S MARKET? – SELLER’S MARKET? THAT IS THE QUESTION!

house_graphIt seems like we are being bombarded daily with information, statistics, and some very long term predictions regarding the Canadian real estate market. This information is all based on national averages and statistics. And the media tries to make it all sound DOOM AND GLOOM because that sells newspapers.

“Experts” are predicting very flat growth nationally for the next decade – approximately 2% annually. That’s still higher than the return on most GIC’s.

Many consumers are asking their REALTOR® is it a buyer’s or seller’s market? The answer to that question – it depends on where you live. Currently in the REALTORS® Association of Hamilton-Burlington trading area we are experiencing a Seller’s Market.

The number of listings is down from last year but we are still seeing multiple offer situations when a home is properly priced. Although the number of sales is down from last year we are seeing continued growth in the average sale price. This is due to continued buyer demand and a lower inventory.

Over the years many consumers have tried to plan their home purchase on waiting for a buyer’s market, only to find that prices continued to rise therefore costing them more money.

Anytime is a good time to buy real estate. It is a long term investment in both your financial future and your lifestyle. Historically real estate values have always appreciated over the long haul, regardless of periodic downturns in the market.

Ann and I have always said that real estate is a very local market. You can’t take national statistics and apply them to your neighbourhood and your current housing situation. So before you start to panic on whether you should buy or sell take the time to talk to a local REALTOR® about what’s happening in your area.

Where is The Market Going?

Clients, friends and family are always asking, “Where is the market going? Is it a good time to buy or sell?”

Last December Ann gave us her version of her crystal ball predictions for 2012. I agree with Ann when she says her crystal ball has never provided a very clear picture of the future. Neither has mine, therefore my impression of where the market is going will be just as vague.

Ann referred to what the ‘experts’ were saying. They said this year would be a good year for employment in Hamilton. At the end of the first quarter of 2012 Hamilton’s unemployment rate was down 0.4 percentage points from the previous quarter. So far so good.

Other ‘experts’ referred to the economy as doing just fine and interest rates are still historically low. The Bank of Canada expects economic growth to reach 2.4% this year and also suggest there may be ‘modest’ interest rate hikes over the next 12-18 months.

On the home sales front, according to REALTORS® Association of Hamilton-Burlington statistics, the number of listings for the first 4 months of 2012 is down from the same period last year, while the number of homes sold is up almost 2% over the same period last year which puts upward pressure on average sale prices resulting in an increase of almost 8% for the same period.

So where is the market going, who really knows? We can look at statistics til the cows come home and come up with a dozen different scenarios for the future. Like Ann said last December, there will always be people getting married, families growing, and job relocations. There will always be a need for houses to be bought and sold regardless of the economy. For you REALTORS® out there you need to be aware of what’s happening in your trading area and adjust your marketing strategies accordingly.

For you buyers and sellers – Is it a good time to buy or sell? Of course it is. With the possibility of increases in the interest rates as well as average sale prices – the longer you wait – the more money it will cost! You must always remember the real estate market is very localized and can vary from neighbourhood to neighbourhood. My advice to you is to hire a professional REALTOR® to help you wade through the mounds of statistics and provide you with the necessary information to make sound real estate decisions. After all, your home is probably the largest single investment you have. You wouldn’t want to make any mistakes would you?????

 

 

 

February Hamilton-Burlington REALTORS Association Statistics

Average Sale Price Continues to Rise

(March 6, 2012 – Hamilton, Ontario)  The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1126 property sales through the RAHB Multiple Listing Service® (MLS®) for the month of February, a 4.9 per cent increase in sales over the same month last year.  RAHB also reported a 9.2 per cent increase in average sale price and an 8.3 per cent increase in the number of new listings in the month  of February this year compared to February of last year.

Seasonally adjusted* sales of all property types were virtually the same as February 2011, with the average sale price increasing 7.9 per cent for the month.  Seasonally adjusted numbers of new listings, however, were 14.5 per cent lower from the same month last year.

December Real Estate Statistics for Hamilton-Burlington Area

Courtesy of the REALTORS® Association of Hamilton-Burlington

December better than average for home sales

(January 5, 2012 – Hamilton, Ontario) The real estate market in the Greater Hamilton, Burlington and outlying areas saw an increase in the number of listings and a small decrease in the number of sales and average sale price when compared to the same month last year, according to Multiple Listing Service® (MLS®) statistics released today by the REALTORS® Association of Hamilton-Burlington (RAHB).

After several months of strong sales, the residential condominium market experienced a drop in number of sales of just under five per cent when compared to December of last year. The same market also saw a 9.9 per cent increase in average sale price over the same month last year.

In the residential freehold market, sales dropped less than two per cent from last year at this time while the average sale price increased by two per cent.

While sales were down compared to last year, listings and sales were both higher than the 10-year average for the month.

“The December market performed well compared to the average for the month over the last ten years,” said RAHB President Cameron Nolan, “and the average sale price continues to rise in our area.”

Every community in RAHB’s marketing area has their own localized residential market with larger swings than are evident in the overall numbers. In December Hamilton Centre, Dundas, Flamborough and Glanbook all saw significant increases in numbers of sales, while Hamilton Mountain, Ancaster, Waterdown and Caledonia showed drops in sales compared to the same month last year.

Ancaster and Dunnville  saw decreases in average sale price compared to the same month last year while Hamilton East, Hamilton Mountain, Grimsby and Glanbrook had the greatest increases in average sale price.

“No one should take these monthly snapshots of local markets as trends,” added Nolan. “They are merely a report of what occurred in a particular month and can change wildly from month to month, especially in areas with lower volumes of sales.”

 

November Real Estate Statistics for Hamilton-Burlington Area

Information provided by the REALTORS Association of Hamilton-Burlington

Residential condominium market continues to shine

(December 6, 2011 – Hamilton, Ontario) The real estate market in the Greater Hamilton, Burlington and outlying areas* continued to show increases in listings, sales and average sale price when compared to the same month last year, according to Multiple Listing Service® (MLS®) statistics released today by the REALTORS® Association of Hamilton-Burlington (RAHB).

The residential condominium market saw the largest gain with an 11.2 per cent increase in the number of sales when compared to November of last year. The same market also saw a 6.1 per cent increase in average sale price over the same month last year. The 189 condominium sales were better than the ten-year average of 179 sales for the month.

In the residential freehold market, sales were up slightly less than two per cent over the same month last year and average sale price was up 8.7 per cent.

Listings were up over both last year and the 10-year average in all sectors.

“We are continuing to see a strong condominium market this year,” said RAHB President Ann Forbes Arndt. “Year to date, condo sales are just over five percent higher than during the same period last year, and the average sale price is 3.4 per cent higher than last for the same 11-month period.”

Other year to date figures show that while the condominium market is stronger than last year, the residential freehold market is just over one per cent lower than the same period last year. Average sale price in the freehold market, however, rose 4.8 per cent over the same year to date period last year.

“Every community in our marketing area has their own localized residential market with larger swings than we see in the overall numbers,” said Arndt. Waterdown, Glanbrook and Dunnville (area 61) all saw significant increases in numbers of sales, while Caledonia and Grimsby showed the largest drops in sales compared to November of last year.

Dundas and Caledonia saw the greatest decrease in average sale price compared to the same month last year while Grimsby, Flamborough and Waterdown had the greatest increases in average sale price.

“These results should not be taken as trends as they are merely snapshots of the market at a particular time,” added Arndt.

Figures quoted are for sales and average sale prices of units located in the jurisdiction* of the REALTORS® Association of Hamilton-Burlington and processed through RAHB’s Multiple Listing Service® (MLS®). Unit sales reflect “all property types” including residential, condominium, commercial property, farm, vacant land and business, unless otherwise specified.

*RAHB’s jurisdiction includes Burlington, Waterdown, Flamborough and Dundas in the north; Hamilton, Ancaster, Stoney Creek, and Grimsby along Lake Ontario; and extends down to the shores of Lake Erie, including Glanbrook, West Lincoln, Smithville, Dunnville, Cayuga, Caledonia, and Hagersville.

October 2011 Market Stats

Residential condominium market shines in October

(November 4, 2011 – Hamilton, Ontario) The real estate market in the Greater Hamilton, Burlington and outlying areas continued to show increases in listings, sales and average sale price when compared to the same month last year, according to Multiple Listing Service® (MLS®) statistics released today by the REALTORS® Association of Hamilton-Burlington (RAHB).

The residential condominium market saw the largest gain with an 11.8 per cent increase in the number of sales when compared to October of last year. The same market also saw a 5.9 per cent increase in average sale price over the same month last year. The 199 condominium sales were better than the ten- year average of 194 sales for the month.

In the residential freehold market, sales were up less than one per cent over the same month last year and average sale price was up 5.1 per cent.

Listings were up over both last year and the 10-year average in all sectors.

See the full report October 2011 Market Stats