The latest housing statistics for the Hamilton-Burlington resale market show a 32% increase in sales in October over the same month last year. This is consistent with the trend we have been seeing over the past few months. The only drawback is that we saw prices decline slightly in October from September in both freehold and condominium properties. The average price of a freehold declined 3% from month to month, but looking at prices last October and 2009 saw a15% increase. In the condominium market, the drop in October from September was 3.6%, but again, last month compared to October last year, the average price rose 6.4%.
Is there reason to be concerned about the latest dip in prices? Not really. The recovery was expected to be gradual, which means we will witness some rising and falling in prices in the market. While this is a national trend, some areas will not experience steep price declines – Hamilton-Burlington being among those areas that will remain relatively healthy even when there is a contraction in the economy. According to Bruce King, President of the Realtors Association of Hamilton-Burlington, “The resale market in the Hamilton-Burlington area continued to outperform most other markets in Ontario, due in part to the continued affordability of property in the area.” He cited a Canada Mortgage and Housing Corporation (CMHC) report last month that stated that the income required to carry a mortgage is well below the actual average income in the area. “This bodes well for the Hamilton-Burlington market for this year and next.”
As we move forward, the market looks good according to a report released by CMHC this month. Housing markets across Canada are expected to strengthen leading into and over the course of 2010 as economic conditions improve, according to Bob Dugan, CMHC’s chief economist. “Demand for existing homes has rebounded since the beginning of the year. In addition, lower inventory levels characterize both the new and existing home markets. As a result, stronger housing demand will be reflected in higher levels of housing starts in 2010,” Dugan says.
As the market continues to improve, the key to finding your dream home or finding the right buyer if you are selling is to work with a Broker who is knowledgeable about the area, who knows the market and can eliminate a lot of guesswork for you. At The Dan Cooper Team, for example, we have a group of multi-disciplined professionals with more than 40 years of combined experience. When you work with the best you are assured of getting the best deal and the home that fits your lifestyle.
Dan Cooper is an award winning Broker with Royal LePage Real Estate Services Ltd., Brokerage. He can be reached at 905.338.3737, direct line at 905.849.3303 or through his recently relaunched website DanCooper.com. Be sure to catch the Dan Cooper Real Estate Education Series on DailyWebTV.com. For a free copy of his Guide to Oakville Real Estate or his booklet How To Sell Your House For Top Dollar, please call The Dan Cooper Team.