• Hamilton Real Estate Market PricesHamilton Real Estate Market Prices Will Not Increase In The Near Future

    My heart sank today as I discovered that MacLean’s magazine had written a similar article titled “why house prices are unlikely to rise anytime soon” in April of this year. I was more upbeat after reading their article that my thoughts were somewhat different from how MacLean’s was thinking. Our headline is not meant to be negative but it is our belief. Quite frankly, stagnant Hamilton Real Estate Market Prices is the best thing that could happen in the long run. At Robert Floris’ Mortgage Architects office, this is how we feel. Are we right? Time will tell.

    Calgary Real Estate Prediction

    Well, seven years ago we wrote about Calgary real estate and how we thought they had peaked. We have proven to be correct. For the Hamilton Real Estate Market Prices, it has been an incredible run of significant price increases, but a break in this trend is not only healthy, but it is normal. Many will argue that the steel city prices are still hot. Their argument is valid with prices under the $500,000 price area. If a good listing appears below this threshold, then it will sell fairly quickly.

    Some Reasons We Believe Hamilton Real Estate Market Prices Will Not Increase

    Here are some of our beliefs that prices should be stagnant over the near-term future:

    • Clients are going back to practicality. As a rental prices escalate, owning under $500,000 still makes sense.
    • Home prices were fuelled by cheap interest rates. When the federal government introduced the mortgage stress test, Canadians now had to be approved at 5.34% which is much higher than today’s mortgage rates at 2.99% or less. This has had a serious affect on affordability.
    • Our clients do not want to bite off more than they can chew.
    • The psychology has changed. Millennials are building their careers and staying at home longer than their parents generation.
    • Canadians continue to increase their debt levels without similar increases to their income. We now owe $2 trillion in mortgages and other consumer debt. That is an 80% increase from 2008.
    • Banks have become more strict in their rules and are choosier in the loan process.
    • Prices cannot go up forever, a normal statistical phenomenon.
    • Many experts will argue that with Hamilton being so close to Toronto, we have a lot of catching up in terms of price and rent. I did factor this dynamic in my analysis. However this is not Toronto. The steel city has had its own rise and thankfully it has been dramatic for all our homeowners in our area. Nonetheless, in my humble opinion we all have a threshold.

    Does This Mean Real Estate Is A Bad Investment?

    Not at all, in fact consumers have more choice in selecting homes (with more MLS listings). They can view a home two or three times to ensure they enter into a comfortable agreement. This is really how Hamilton Real Estate Market prices are supposed to behave!

    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.

    If you would like to apply for a mortgage online, please follow this link.

    If you would like to see our Google reviews or leave one yourself, you can do so here.

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