Wednesday, October 24, 2018
Real Estate Market
Following a steady decline since last August, Hamilton average home prices are up 5.42% year-to-date and 1.39 % year over year for the month of September 2018 according to the most recent Teranet—National Bank Housing Price Index report. In other words, though we have seen an increase in values thus far in 2018 we about more or less back to where started about a year ago. Housing appreciation in the area began to soar around the Spring of 2016 and then values began to steadily decline in the Spring of 2017 following the introduction of the Fair Housing Plan which included a 15% Non-Resident Speculation Tax. Other contributing factors were several interest rate hikes by the Feds and new Mortgage regulations affecting uninsured borrowers.
The fact that the prices have rallied will come as a relief to buyers who purchased during the height of the market last Spring and had concerns about their homes value. Of course, some buyers may be at a loss if they purchased during the peak of the market and needed to sell shortly thereafter. Moving forward the Bank of Canada has alluded that there may be several interest rate hikes to come in the near term. It will be interesting to see what impact this may have on sales activity and future home values in our area.