Early Spring Review

 

What is going on with this market?

The first few months of this year have been very abnormal. Demand has skyrocketed and prices and competition for homes has gone up drastically even from the end of 2016. The market right now is very much tilted in the sellers favour with many buyers getting stuck in the middle.

At the moment the average prices in Hamilton are up nearly 30% year over year which is of course good for sellers getting out of the market, but not so good for buyers or people buying and selling. This, of course, is unsustainable for any market. The main reasons for the spike in prices is low inventory (listings) and strong demand coming from families and speculators from the GTA.

Being in the Hamilton market, we are both blessed and cursed that so much of our market is influenced from Toronto. It helps our market continually grow as families branch out away from Toronto in search of lower prices. Hamilton is intriguing as for Toronto homeowners because even with the price just, you can get substantially more for your money than in Toronto. Hamilton still offers quick access to highways, has many great communities and offers a much different feeling than living in Toronto. The more prices rise in Toronto and Hamilton the more people with continue to branch out. This is seen in prices currently rising everywhere from Niagara to Windsor.

It is a hard time for buyers as many properties are selling with a crazy amount of competition. There is one winner and sometimes 10+ buyers being let down. This also isn’t good for buyers because many offers are coming in with no conditions, which is ideal for sellers (in most cases), but risky for buyers. It is important to be aware of all risks when considering removing conditions from your offer.

Where are we heading?

The market is so strong right now it seems unstoppable. However, it is important to keep in mind that huge increases are not good for the overall market and a slow gradual rise in more ideal. There will come a time when the market begins to slow and we move toward more balance. Factors that could affect prices can include a rise in listings, government intervention, rising interest rates and well as many other unknown factors.

It is important to know what you and your family can afford/handle. A budget is always important and remember not to be overextend yourself.

Any questions? Call us today!

 

Contact Team Schlett Kozak!