• Feeling The Current Trends In The Hamilton Real Estate Market

    Without stating the obvious, in September, real estate sales were the lowest since 2010. Why, is the real answer we are seeking. Here are some observations from our vantage point.

    Sellers are still expecting the past peak price.

    Currently we have over 1800 listings in the Hamilton Wentworth region. This is such a contrast to years past where homes for sale were in short supply. many sellers are a tad stubborn. They are seeking the home values from a few years back. Unfortunately that market has passed us.

    Buyers not in a rush to purchase.

    Four years, potential purchasers settled for their home purchase, that has changed. With the market, slowing and many more active listings, buyers are being choosy. Many buyers are also waiting for lower home prices in the near future.

    Lack of affordability

    The lack of affordability has been a longer trend. Combined high prices, along with high rates along with the mortgage stress test have made it hard for Canadians to afford to buy. As stated before, we believe prices or rates will need to drop to shake this slow market. Time will give us the answer.

    Canadian consumers are feeling anxious.

    We receive calls weekly from consumers who are scared. Their mortgages are renewing and the increase payments are causing anxiety. These feelings are prevailing all throughout our country. Along with increased taxes, gas and food, we are tightening our belts. We may be wrong, but we feel strongly that a recession is near.

    Shorter term rates are gaining popularity.

    We still have an inverted yield curve in Canada, which means shorter term rates are higher than longer-term rates. [example one year is higher than the five-year term]. Consumers are beginning to select shorter term rates as the rationale states they believe rates will come down in the near future. D2 and three-year terms have certainly gained traction.

    Government is not helping.

    If you have an uninsured mortgage and want to switch your mortgage, you must still use the stress test. This makes no sense. If they renew the mortgage, they do not have to. But if they switch to get a better rate, they do. Dumb.  This news came this week.

    The state of the market is expensive for the mortgagers and slow for the economy. Without some government intervention, or possibly a recession, we appear stuck. Something has to give.

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