What will the year hold for the real estate market? Are we still in Seller's Market? Will home prices continue to rise? Are interest rates going to skyrocket? What is up with the "new" mortgage rules? We study the predictions and closely watch the patterns with what has been happening in the local market here in Halton & Hamilton Regions.
After the craziness with Real Estate, this time last year, with the lowest inventory ever in the history of MLS, everyone is curious how 2018 is going to fair. We saw an increase of inventory suddenly in May 2017, that continued until November, and though prices did not drop, they stabilized holding the 25-30% increase in value, there were fewer sales happening. That said, 2017 was a record breaking year and remained a Seller's Market. Now, as we are at the beginning of our busiest market, the Spring Market, in Burlington, Hamilton, Oakville and the surrounding areas, we are back to lower inventory levels and predictions the market will increase minimally 8-9% this year. This is good news, and definitely confirms we have copycatted the same market trends as the Vancouver markets saw from 2016 into 2017. This makes perfect sense, Vancouver is back to their regular high demand Seller's Market now, as both areas in Canada are the hubs of this country and the most sought after real estate markets to live in. In the Greater Hamilton Area and in the GTA (this is now including not just east Halton but also Burlington), we are still in a Seller's Market, and this will remain through-out 2018. So, if you are hearing talk about prices going down?! It's not happening! Are there still deals out there? Yes. But it isn't because the "bubble" will burst, or the sky is falling. We are fortunate to live and work in a high demand area and our Seller's Market will continue.
Mortgage Rules changing is all over the news, and although media is getting a bit better at clarifying this is only going to affect 10% of people buying, there is still a lot of confusion. As I said in an earlier newsletter, the banks and most lending institutions have been doing the stress test to get your approval all along, you just had no idea. If you truly believe that you are in that 10%, please give us a call, we have Mortgage Brokers we can refer you to at no cost, that can get around the new rules and requirements. Yes, interest rates are rising, however, they will remain at historical lows. Some of you will remember the days when 18% was the going rate, others like when I started selling in 2002 will remember paying 5-7%, depending on whether you were self employed or working for a "stable" company. Even with the Bank of Canada rate rising to 1.25%, the rates will remain reasonable. This inching up of mortgage rates is reflective of our booming economy and historically low unemployment rates. If you are making a move this year, get a rate locked in now. If the rates rise? Your mortgage pre-approval will be guaranteed for 120 days, giving you 4 months to house hunt. If the rate goes down before you find a property? You can get that newer, lower rate locked in and guaranteed. It's a win-win!
While it’s impossible for us to predict the future, experts rely on current market trends to forecast what may happen this year, if present trends continue. This month’s information outlines several predictions experts have made about the national housing market in 2018, as well as a few predictions about mortgages. The brochure outlines cross country predictions, but what is our local housing market doing? You can always reach out for an update from myself, Derek or Katie for the latest news! If you are thinking of buying or selling, or you just want more information about our local market, give us a call! Wishing you all a Happy Family Day this month and a Happy Chinese New Year!