At Robert Floris’ mortgage architects in Hamilton we are continually asked how today’s market is. Let’s be really honest and factual, it is very soft. If you read our earlier updates, this should be no surprise. The market was not sustainable at double-digit growth. CMHC Hamilton analyst Anthony Passarelli believes the reason is that Steeltown has not been growing in terms of population, personal income and employment to justify these past increases. These factors are partially true but many current sellers saw their neighbours receive high prices. Much more housing stock is currently available. Basically there is much supply which is causing buyers to take their time to buy. My thoughts are that tighter lending requirements did not help as well, nor did more conservative appraisals.

As an example we will use a wonderful family who had sold in the height of the market to Toronto buyers. Although a deposit of $30,000 was given, the purchase did not close. They put the home back on the market for a month at the original price but no offers arrived. Last week they lowered the price by $30,000 yet the response was less than enthusiastic.

It is our belief that the market is acting very normal. I certainly would not be panicking, in the long term this is good for the overall real estate market. It gives a greater portion of the population more affordability and more choice. Hamilton is a great city in the market will normalize. It always does.

Robert Floris is a Mortgage Agent located on the East Hamilton Mountain, serving Hamilton and the GTA and Ontario. He not only offers the best mortgage rates, but also honest advice and a financial plan at no charge to the client.

Robert can be contacted at 905-574-9200 Ext. 215 OR by email at mortgages@robertfloris.com. You can fill out an application online at https://application.malink.ca:8112/App/MARC/FLORISR/en-ca/1896 with absolutely no pressure and no obligation.

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