Including Houses, Homes, Townhouses, & Condo Values, Current MLS® Listings, & Average Selling Home Prices
For West, Central, East Hamilton, Mountain, Dundas, Ancaster, Glanbrook & Stoney Creek
Hamilton Real Estate October 2017 Market Report
October 2017 had 1999 New Listings, ALL Types, reported which is up 12.2% from October 2016, and 14.3% higher than the 10-year average.
All Residential Sales of 1272 Properties were down only 4.9% from the same month last year. Freehold Sales were down by 12% and Condominium Sales were UP 23.6%. These numbers are showing the INCREASE in Condominium interest. The Average Residential Freehold Sales Price of properties sold through the RAHB Multiple Listing Service® (MLS®) system in October2017 was $602,984 compared to $541,076 the same month last year, an increase of 11.4%, and the Condominium Average Price is $388,601 compared to $374,021, which is up 3.9% from last year for this month.
TRENDING NOW...Sales Up Slightly in and around
The data provided by the Hamilton-Burlington Real Estate Board shows a bit of an increase in Sales. It seems that most of this increase can be attributed to the Condominium Market. The other interesting point is that the Sales to new Listings ratio has also crept up this month to 69%. Still not the 80% and over it was in the Spring of 2017, however, it has entered the lower end of a Sellers Market. The end of month listing inventory shows 2445Freehold Residential Properties left for sale, up 49.6% compared to 1634 left at the end of the month in 2016. Average days on the market increased from 22 to 31 for Freehold this month, and from 24 to 27 for Condominiums.
What is the Stress Test and is it having an effect
on the Fall 2017 Market?
It is still a little early to tell how the Market will be affected by the Government imposed mandatory Stress Test, to take effect January 1st, 2018. A year ago, the federal government made a rule change that all borrowers who were putting less than 20% down on a purchase had to qualify under the Stress Test. The rule change just announced in October 2017 was that now ALL Borrowers, including those with more than 20% down,as well as existing borrowers looking to refinance, will need to qualify under this Stress Test.
What is the Stress Test?
When you are looking to qualify for a mortgage, you are essentially qualifying for your mortgage payment. Is your income enough for you to be able to make your monthly payment. Your monthly payment is determined by your interest rate, your amortization, and your mortgage amount. Previous to the stress test, we could use the actual mortgage rate (let’s say 3.29%) that you were getting to determine the mortgage payment for application purposes.
Now, with the ‘Stress Test’, we would need to use a mortgage payment that is the greater of the Bank of Canada’s posted rate (currently 4.89%) or the actual rate you would be getting + 2%. So if you were getting a rate of 3.29%, you would need to qualify to carry your mortgage as if the rate was 5.29%. To clarify further, you have to qualify for the mortgage payment as if your rate was 5.29%, even though you would be receiving a rate of 3.29%. New Government Regulations will reduce your ability to access the equity in your home and will limit those looking to purchase.
Examples of Mortgage Qualifications After January 1st, 2018
Approval for $500,000today= $400,000 after Jan 2018
Approval for $600,000 today= $480,000 after Jan 2018
Approval for $700,000 today= $560,000after Jan 2018
Average Year To Date Prices
The map below shows the current Year to Date Average Prices.
Some of the areas not included in the map below are Burlington$774,133, Flamborough$800,058, Waterdown $686,125,Grimsby $584,046, Caledonia$433,217, and Cayuga $403,887. When looking at the Average Prices in and around Hamilton, it is important to note how they have changed significantly over the last year and even now from month to month. If you are thinking of selling your house or condominium, get the most up to date, LOCAL information. A Market Evaluation done even a couple of months ago needs to be updated!
Always remember that "Average sale price is based on the total dollar volume of all properties sold through the RAHB MLS® System. Average sale price can be useful in establishing long-term trends, but should not be used as an indicator that specific properties have increased or decreased in value." What that means is not every house or condo has increased in price by the same percentage. It is really important to talk to an experienced local REALTOR® to see EXACTLY what is happening in your particular neighbourhood. It is also important to find out what you can do to your house to get the highest amount possible when you are ready to sell!
In this Market, it is important that you know about the houses getting listed Immediately!Click Hereto get set up on the Instant Notification Search, otherwise, you will only know about listings once they are reported to the public sites. If you wait till you see it on Realtor.ca or other sites, it's too late, and is probably already SOLD!
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Note: Numbers of sales represents sales reported on properties listed on the Multiple Listing Service (MLS®) of the REALTORS Association of Hamilton-Burlington. Average sale price is calculated by dividing the total dollar volume of sales (not shown) by the number of sales in that month.
Laura Doucette, at Sutton Group Innovative Realty Inc., Brokerage (in Real Estate since 1990) can give you the LOCAL market knowledge and experience needed to help you buy your first home, next home, retirement home, or investment property. Laura is also ASA Certified (Accredited Senior Agent) if you are helping an elderly parent with the sale of their home.