Here we are at the beginning of December 2017, and time for another market update video
The market has been balanced but a bit unsettled.
- We saw home prices peak in March/April, after a 35% year-over-year, growth which was then followed by a drop in prices over the early summer. Things quickly switched from a Seller’s market to a Buyer’s market.
- In July August, prices bottomed out at about 15% down from the peak and buyers started to purchase again in September October.
- So while prices are still up roughly 20% from last December, the market is unsettled.
- The biggest factor affecting the market is the new mortgage qualification rules.
- Roughly 10% of buyers will see a reduction in their buying power as of January 1.
- Some buyers are getting in before the new mortgage rules apply, while others are waiting to see if the new rules cause a further drop in prices.
- In the current market
- Buyers have an opportunity to purchase a home without being in competition.
- Seller’s are typically now getting within 5% of their asking price, for properly priced homes
- So its what we call a Balanced Market.
- What will 2018 bring?
- We expect Burlington Oakville and Hamilton to continue to be among the best cities for real estate investment in Canada. Its unlikely that we’ll see 35% price growth again any time soon, but with the flow of people moving from the Toronto market, real estate here should continue to be a great investment in 2018 and beyond.
- We’re happy to help with advice, ideas, or just a conversation about everyone’s favorite topic – real estate.