• How Hamilton Home Prices Keep Going Higher

    How Hamilton Home Prices Keep Going Higher

    Lead Mortgage Broker with over 30 years of mortgage expertise, currently at Mortgage Architects.

     Hamilton single family home prices rise by 12%…wow.

    House prices will go up forever…not so fast.

    I thought we had a pandemic going on?

    Hamilton housing sales are thankfully healthy during this pandemic, but statistics can be misleading. We will share our thoughts on why shortly. We are not here to be negative, in fact, my livelihood as a mortgage broker depends on a healthy housing market. Yet as I studied the latest results of May 2020 in Hamilton, I kept asking ‘why?’. The economy is tanking yet we have the local average price for a single-family home rise by 12%. Why?

    The answer is not that hard, in fact, it is the golden rule of supply and demand. Buyers of real estate were already lined up to keep the market healthy. What did drop was the inventory of home to enter Hamilton to be sold. The problem was that the new residential listings not only dropped, they plummeted. The stock of homes for sale went from 1530 in May of 2019 to 762 in May of 2020. Too many bidders were going for the few homes available. The Steel City price range of $300,000 to $500,000 is the most sought-after price range (also the most affordable) with countless offers. I suspect with homeowners now more confident in going forward, the listings will gradually go up. According to Laura Doucette, top agent at Sutton Group, the new listings are growing.

    The below chart shows the 2019 vs. 2020 listings per a 10-week Spring Market in Hamilton

    New Listings Per Week
    2019 2020
    190 105
    189 71
    205 68
    132 68
    134 91
    175 61
    162 89
    158 114
    1683 873

    Real estate, like nature, will balance out the market to it’s true value. Having a 12% year over year will only hurt us all in the long run. The June sales statistics will bear this out as listings increase and match up better with the demand of the home buyers.

    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.

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

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