CLICK HERE..FOR 2018 PROPERTY FORECAST FOR ANCASTER ONTARIO.
CLICK HERE...FOR HAMILTON MOUNTAIN 2018 HOUSE PRICES, PROPERTY FORECAST.
Hamilton residential housing market was like riding a rollercoaster in 2017. In the first few months of 2017 (till April) residential homes and condos sold for much more than the same months in 2016. Prices went up quickly. It was clearly a sellers market, homes were selling in competition. Home prices increased significantly while number of days houses stayed on the market decreased.
In April 2017 provincial government introduced some measures with the intent to cool the real estate market. Those changes had an impact on residential real estate market in Hamilton, Toronto and Greater Golden Horseshoe.
CLICK HERE...FOR DETAILS ON HOUSING MARKET IN HAMILTON IN 2017
Since April 2017 home prices in Hamilton have a pattern of coming down. On average residential home prices in Hamilton decreased by plus/minus 15% from 2017 April high.
Home prices in Hamilton in first and second quarter rose too quickly and were much higher than what local economic fundamentals and job situation could support.
Since may 2017 we observe stay price decline and homes for sale stay longer on the market. The average number of days on market increased to 41 (from 30) in the freehold market and increased significantly to 39 days from 17 in the condominium market. (stats from December 2017 compared to a year before)
FREEHOLDS NUMBERS, DECEMBER 2017
Average freehold property sale price stands at $548,913 with 7.4% increase from the same time a year ago.
Listings of freeholds were up by almost 4% but sale declined by over 10%
Days on the market increased from 30 to 41.
All the above quoted numbers for freeholds are indicating that Hamilton residential freehold prices continued to slide with more homes for sale but fewer sales and houses staying on the market longer.
For 2018 we can expect the same trends to continue.
CONDOS, CONDOMINIUMS IN HAMILTON ONTARIO
Condo sales decreased in Hamilton by 35% from a previous year and number of listings in Hamilton real estate market in December 2017 also decreased significantly by 43%.
Average sale price for condominium property in December 2017 was $395,845
Days on the market increased dramatically from 17 to 39.
HAMILTON AVERAGE SALE PRICES IN ALL DISTRICTS/NEIGHBOURHOODS
Every community and neighbourhood in Hamilton's real estate market has its own localized market. Please contact Waldi and Margaret Niburski top Hamilton Realtors for professional advice.
STRESS TEST AND IMPACT ON HAMILTON MARKET
Starting January 1st 2018 mortgage applicants are expected to pass a stress test a important factor that can also change market dynamics. Banks will qualify the borrowers based on whether they could still afford their monthly payments if interest rate were 2 per cent higher.
This move will let fewer people to qualify for loans. This could in turn bring home prices even lower as sellers will find fewer buyers to pay premium prices.
To qualify for their loans buyers might have to lower their pice range by 15% or more. Another option would be considering different neighbourhoods as in Hamilton average price of homes on Hamilton Mountain (district 18) was $506,529 while East Hamilton (District 23) was $304,067.
Forecast predict that in spring 2018 we will observe year-over-year house prices to drop but we must remember that this decline is not sudden but a process that started in April 2017.
The average home price in Hamilton in 2018 is expected to be somewhere between $535,000 and $585,000.