Hamilton Home Prices: A Simple Way To Determine Where They are Headed

Hamilton home prices are headed to the moon. But are they?

 

How can the history of prices can teach us the future? Let’s explain.

 

It’s 2020, the economy sucks and by the way we have a global pandemic going on. So why are home prices going up? We touched on this local Hamilton phenomenon several weeks ago. It is simple supply and demand. There are very few properties for sale, so the house buying public are outbidding each other for homes. Will it last? I suspect no, but I have been wrong many times. Let’s explore history to get a better understanding and help the Hamilton housing market.

 

With the help of history and the Hamilton MLS history chart (see attached), we can view what really causes price adjustments. As suggested, above reviewing simple supply and demand, we can view what causes market price fluctuations.

Let’s review two extreme cases.

 

Year	Listed	Sold	Sold to Listed Ratio	Price Change from Previous Year
2017	22,182	14,563	1.52	+ 13.34% increase
1991 (Recession)	36,187	8350	4.33	-7% decrease

 

During the recession of the 90’s, many local Hamiltonians lost work and thus, forces many to sell their home. The year 1991 had almost 3 times more listings during this tough economic period. This was a period where prices went down for four years and really did not go up until 1997. The last ten years has been completely reversed. The economy is strong, rates were low and listings were few. Needless to say, being in the housing market in the new century has proven to be a great investment.

 

During this period of a pandemic, a potential home purchaser should remember two simple rules. Number one, how is the economy doing. The second rule is to review the sold to listed ratio. In mid 2020, the market is hot, listings are in short supply and this bodes well for home prices.

About Me:

Robert Floris has been in the mortgage industry for 30 years, including working as a Sales Manager for a major chartered bank. Over his career, he has personally lent over 1 billion dollars and proudly continues to advise and tutor his valuable clients.

Robert Floris has been in the mortgage industry for 30 years, including working as a Sales Manager for a major chartered bank. Over his career, he has personally lent over 1 billion dollars and proudly continues to advise and tutor his valuable clients.

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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