• marketBe Careful To Know What Type of Real Estate Market You Are In

    It is safe to say that the last two years have been nothing short of entertaining in the Hamilton-Wentworth home market. However, it is our belief that it may not have been so much fun if you were actually buying or selling. This is because market sentiment has moved so much. Let’s review in general what happened:

    September 2016 to December 2016

    Good healthy market for both sellers and buyers. Prices up from last quarter in 2016.

    January 2017 to April 2017

    First time in my career that you had to buy first, sell second. Shortage of listings. Prices skyrocket. Old law of supply versus demand.

    May 2017 to December 2017

    Prices come off their highs. In some cases, prices come down by 10%. Healthier market as buyers and sellers are better matched. People purchasing before new mortgage rules.

    January 2018 to June 2018

    Not surprisingly, sales and prices slip due to new government mortgage rules. Buyers market returns as they are not pressed to make quick decisions to buy.

    July 2018 to September 2018

    Summer months slow down. This summer is no exception. Market for homes under $450K remain buoyant. Need to sell homes fast as many clients are requiring expensive blanket mortgages.

    What is a blanket mortgage?

    It occurs when you have bought a new home but you have not yet sold your current home. You must close the new purchase so you put a large mortgage over both properties. Needless to say, they are a nightmare type of mortgage since the rates are high, the fees are crazy, you have added legal expenses and most importantly, your stress level goes through the roof. A recent couple visit us and after reviewing their documents, they had paid $16,000 in fees to lenders and another mortgage broker.

    A good realtor will educate you on the type of market you’re in and will prevent you from buying first without a condition. A local lawyer we work closely with has five clients currently who are entering into a similar situation. They bought but they still have not sold their home. Knowing the market you are in will save you money and your health.

    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.

    Thanks for reading!

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