• Hamilton real estateState of the Hamilton Real Estate Market

    As I write this (April 21, 2018) the sunshine is out and so are Hamiltonians. It was like a new beginning to view the people walking their dogs and kids out on the streets. People were outside, in the shopping malls and in their driveways. Yes, winter may finally be over. At Robert Floris’  Mortgage Architects office in Hamilton, as mortgage brokers, we thought we should reflect on the last three months, the dark days of our Hamilton real estate market. Needless to say, it is not the start we all wanted. Should we be surprised with the Hamilton real estate market? The simple answer is no. In 2017, from January to April, the Hamilton real estate market was sizzling. It would be difficult for any real estate market to keep this pace of sales and price acceleration, and our city is no exception.

    Let’s Review The Facts:

    • January to February: sales were down 31% from the previous year 2017
    • March: sales were down 37% from a year earlier from 1689 in 2017 to 1050 this year and more importantly sale prices fell 13.8%

    Factors That Contributed To This Trend:

    • The weather
    • The real estate market was unsustainable a year ago (for math clients, the sale prices are reverting back to the mean)
    • The new mortgage rules have had a major impact on the real estate market

    Let’s touch on the Canadian mortgage market. A year ago the average five year fixed rate was 2.49% to 2.59%. Now it is 3.34% to 3.59%. The worst part of this is that all mortgages were imposed stress tests. All Canadians today need to pass the government test of 5.14% in order to qualify. It is not difficult to realize it has had an effect on affordability and subsequently the Hamilton real estate market.

    Is it time to panic? I personally do not think so. Nothing goes straight up. This is normal if you are loyal readers you know the major factors to keep your eye on our mortgage rates (they are still cheap, although the stress test do not help) and the economy. If people are working, they are buying. The sun will shine on the Hamilton real estate market again!

    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.

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    Thanks for reading!

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