We're all familiar with the cliche psychological "test" for optimism vs pessimism, where a cup of liquid is placed in front of you, with the liquid around the halfway mark, and then you answer the question: is it half full or half empty?
While this little test may or may not be effective, especially when it's so well known that people can adjust their response, it does illustrate that the same situation can often be interpreted in two very different ways. You see this a lot with news media and headlines about the real estate market.
The other day, CREA released nationwide real estate market statistics. Based on exactly the same release of information, some news sources present it as good news and others as 'bad'. For examples, Better Dwelling focuses on the year-over-year gain in prices and suggests a dismal situation with prices making ["the smallest advance since 2009"]. Meanwhile the Financial Post focuses on [Toronto's 17% surge since the spring] and the Canadian Real Estate Magazine perceives this as [a possible turning point for the market] to rally.
It always amazes how much the news can be influenced by the perspective or opinion of the person writing it. Still, I'm not saying not to read the news or not to trust them.. just to use a little critical thinking, examine more than one news source, and maybe learn to look at the source stats yourself.
Saturday 21 July 2018
Friday 13 July 2018
Market Snapshot: July 1-7, 2018
Local MLS® Sales Data
All Hamilton Real Estate Districts Combined*
Total Sales: 130
Average Price: $506,417
Median Price: $479,950
Avg Days On Market: 27
Sales volume saw a drop this week, which is probably unsurprising with a holiday weekend and the start of summer vacation season.
Prices receded in a similar fashion, but average remained above the $500k point, and time on market remained pretty close to the same as it has been/
Note that average price can vary by district and property type. Call to discuss sales data for your specific area, or for a sale price estimate specific to your property. **
*Ancaster, Dundas, Glanbrook, Hamilton, Stoney Creek, Waterdown
** Not intended to solicit clients currently under contract.
All Hamilton Real Estate Districts Combined*
Total Sales: 130
Average Price: $506,417
Median Price: $479,950
Avg Days On Market: 27
Sales volume saw a drop this week, which is probably unsurprising with a holiday weekend and the start of summer vacation season.
Prices receded in a similar fashion, but average remained above the $500k point, and time on market remained pretty close to the same as it has been/
Note that average price can vary by district and property type. Call to discuss sales data for your specific area, or for a sale price estimate specific to your property. **
*Ancaster, Dundas, Glanbrook, Hamilton, Stoney Creek, Waterdown
** Not intended to solicit clients currently under contract.
Tuesday 10 July 2018
Hamilton Sees Strong House Price Appreciation in the Second Quarter of 2018
The aggregate price of a home in Hamilton saw strong growth in the second quarter of 2018, increasing by 6.1 per cent year-over-year to $541,778, according to the Royal LePage House Price Survey(1) and Market Survey Forecast released today.
When broken out by housing type, the median price of a two-storey home increased 5.9 per cent year-over-year to $571,330 in the second quarter of 2018, while the median price of a bungalow rose 7.6 per cent year-over-year to $496,005. During the same period, the median price of a condominium increased by 0.8 per cent year-over-year to $321,014.
Hamilton continues to see house prices rise on a quarter-over-quarter basis, yet remains an affordable place to live relative to the Greater Toronto Area. While sales activity for two-storey homes is slower than usual, the area continues to see multiple-offer scenarios on properties that are well priced.
The situation in Hamilton mirrors those across the country – the change in mortgage rules is requiring first-time buyers to rely more heavily on their families for financial assistance. However, the region provides a lot of options for new home buyers in the condominium segment, as prices remain affordable and developments continue to be built. Millennials are increasingly moving into these units in the downtown area, enabling this demographic to enjoy urban living.
Looking ahead to the third quarter of 2018, Hamilton's housing market is expected to become more balanced, with some moderate price increases as the year progresses.
Nationally, price appreciation slowed across Canada in the second quarter of 2018, marked primarily by softness in the Greater Toronto Area (GTA), where many regions have witnessed year-over-year price declines.
"It was a spring market that never blossomed," said Phil Soper, president and CEO, Royal LePage. "As anticipated in our original 2018 forecast, the new federal mortgage stress-test measures slowed the market to a standstill in much of the country, as some families adjusted their expectations in a world with lower borrowing capacity, and others not impacted by the OSFI regulations moved to the sidelines, adopting a 'wait and see what happens to home prices' approach."
The Royal LePage National House Price Composite, compiled from proprietary property data in 63 of the nation's largest real estate markets, showed that the price of a home in Canada increased 2.0 per cent year-over-year to $613,968 in the second quarter of 2018. When broken out by housing type, the median price of a two-storey home rose 0.8 per cent year-over-year to $720,504, while the median price of a bungalow climbed 1.8 per cent to $512,979. At a national level, condominiums posted a significantly higher rate of appreciation when compared to the detached segment, rising 8.1 per cent year-over-year to $435,421. Looking ahead, Royal LePage is projecting an uptick in home price appreciation in the third quarter and forecasts that the aggregate price of a home in Canada will increase 1.9 per cent over the next three months.
"The market has begun to absorb and adjust to the new realities; we expect an uptick in sales volumes and prices during the second half of 2018," Soper continued. "The fundamentals have not changed. The economy is strong and unemployment is very low. We face shortages in our major cities, with many more people looking for homes than the market has available for purchase or rent. Upward pressure on prices will likely return to most markets this quarter."
About the Royal LePage House Price Survey
The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 63 of the nation's largest real estate markets. Housing values in the House Price Survey are based on the Royal LePage National House Price Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of almost 18,000 real estate professionals in more than 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's and children's shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.
(1) Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions.
When broken out by housing type, the median price of a two-storey home increased 5.9 per cent year-over-year to $571,330 in the second quarter of 2018, while the median price of a bungalow rose 7.6 per cent year-over-year to $496,005. During the same period, the median price of a condominium increased by 0.8 per cent year-over-year to $321,014.
Hamilton continues to see house prices rise on a quarter-over-quarter basis, yet remains an affordable place to live relative to the Greater Toronto Area. While sales activity for two-storey homes is slower than usual, the area continues to see multiple-offer scenarios on properties that are well priced.
The situation in Hamilton mirrors those across the country – the change in mortgage rules is requiring first-time buyers to rely more heavily on their families for financial assistance. However, the region provides a lot of options for new home buyers in the condominium segment, as prices remain affordable and developments continue to be built. Millennials are increasingly moving into these units in the downtown area, enabling this demographic to enjoy urban living.
Looking ahead to the third quarter of 2018, Hamilton's housing market is expected to become more balanced, with some moderate price increases as the year progresses.
Nationally, price appreciation slowed across Canada in the second quarter of 2018, marked primarily by softness in the Greater Toronto Area (GTA), where many regions have witnessed year-over-year price declines.
"It was a spring market that never blossomed," said Phil Soper, president and CEO, Royal LePage. "As anticipated in our original 2018 forecast, the new federal mortgage stress-test measures slowed the market to a standstill in much of the country, as some families adjusted their expectations in a world with lower borrowing capacity, and others not impacted by the OSFI regulations moved to the sidelines, adopting a 'wait and see what happens to home prices' approach."
The Royal LePage National House Price Composite, compiled from proprietary property data in 63 of the nation's largest real estate markets, showed that the price of a home in Canada increased 2.0 per cent year-over-year to $613,968 in the second quarter of 2018. When broken out by housing type, the median price of a two-storey home rose 0.8 per cent year-over-year to $720,504, while the median price of a bungalow climbed 1.8 per cent to $512,979. At a national level, condominiums posted a significantly higher rate of appreciation when compared to the detached segment, rising 8.1 per cent year-over-year to $435,421. Looking ahead, Royal LePage is projecting an uptick in home price appreciation in the third quarter and forecasts that the aggregate price of a home in Canada will increase 1.9 per cent over the next three months.
"The market has begun to absorb and adjust to the new realities; we expect an uptick in sales volumes and prices during the second half of 2018," Soper continued. "The fundamentals have not changed. The economy is strong and unemployment is very low. We face shortages in our major cities, with many more people looking for homes than the market has available for purchase or rent. Upward pressure on prices will likely return to most markets this quarter."
About the Royal LePage House Price Survey
The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 63 of the nation's largest real estate markets. Housing values in the House Price Survey are based on the Royal LePage National House Price Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of almost 18,000 real estate professionals in more than 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's and children's shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.
(1) Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions.
Friday 6 July 2018
RAHB REALTORS® RELEASE JUNE STATISTICS
The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1,257 sales were processed through the RAHB Multiple Listing Service® (MLS®) System in June, 14.2 per cent fewer than the same month last year and 19.2 per cent fewer than the 10-year average for the month. (cont'd)
[Read the full report]
Monday 2 July 2018
The 'escape clause' and how it works
As we looked at last week, [the sale-of-property condition] allows a buyer to make an offer on a property with a condition on selling their property, rather than waiting until they are sold.
Because selling a property can take longer than other conditions, such as mortgage or home inspection, a seller is often not keen on accepting this condition from a buyer. After all, you're then stuck in a limbo of conditional sale until the buyer gets their own property sold. If they don't successfully sell and end up giving up, then you can find yourself without a buyer and a lot of wasted time.
The 'Escape Clause' is one thing that helps to mitigate this risk. The standard wording from the Ontario Real Estate Association's clause library is:
So the seller gets to continue to market their property for sale and potentially accept another offer from a different buyer (with a condition on the seller getting out of the previous sale). If this happens, then the buyer will have "XX" hours from the time the seller gives them notice to either firm up or back out. The time given varies, typically between 24 and 72 hours. The seller naturally wants less time, the buyer wants more. I find 48 hours to be a pretty usual compromise.
The buyer can waive their sale-of-property condition and enter into a firm sale. The obvious risk is that you don't sell your house in time to close on the agreed [closing day]. This puts you into a breach of contract with all the related problems that brings.
But the other way, you're backing out of the sale and letting the other buyer have it, with your deposit being returned just like any other condition falling through. Not very attractive option, but better than not closing, not getting your deposit back, and getting sued for it.
In a situation like this, it is important to discuss your options with your real estate professional and maybe even your lawyer.
Because selling a property can take longer than other conditions, such as mortgage or home inspection, a seller is often not keen on accepting this condition from a buyer. After all, you're then stuck in a limbo of conditional sale until the buyer gets their own property sold. If they don't successfully sell and end up giving up, then you can find yourself without a buyer and a lot of wasted time.
The 'Escape Clause' is one thing that helps to mitigate this risk. The standard wording from the Ontario Real Estate Association's clause library is:
Provided further that the Seller may continue to offer the property for sale and, in the event the Seller receives another Offer satisfactory to the Seller, the Seller may so notify the Buyer in writing by delivery to the Buyer personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto. The Buyer shall have <XX> hours from the giving of such notice to waive this condition by notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto, failing which this Offer shall be null and void, and the Buyer's deposit shall be returned in full without deduction.
So the seller gets to continue to market their property for sale and potentially accept another offer from a different buyer (with a condition on the seller getting out of the previous sale). If this happens, then the buyer will have "XX" hours from the time the seller gives them notice to either firm up or back out. The time given varies, typically between 24 and 72 hours. The seller naturally wants less time, the buyer wants more. I find 48 hours to be a pretty usual compromise.
The buyer can waive their sale-of-property condition and enter into a firm sale. The obvious risk is that you don't sell your house in time to close on the agreed [closing day]. This puts you into a breach of contract with all the related problems that brings.
But the other way, you're backing out of the sale and letting the other buyer have it, with your deposit being returned just like any other condition falling through. Not very attractive option, but better than not closing, not getting your deposit back, and getting sued for it.
In a situation like this, it is important to discuss your options with your real estate professional and maybe even your lawyer.
Market Snapshot: June 17-23, 2018
Local MLS® Sales Data
All Hamilton Real Estate Districts Combined*
Total Sales: 159
Average Price: $515,125
Median Price: $476,000
Avg Days On Market: 27
A small increase in sales volume, but nothing significant. Prices also recovered from the shot-lived drop the week before, with average price bouncing back above $500k and a typical increase to median as well.
Still no significant change in time-on-market, suggesting a pretty stable activity level.
Average price varies by district. Call to discuss sales data for your specific area, or for a sale price estimate specific to your property. **
*Ancaster, Dundas, Glanbrook, Hamilton, Stoney Creek, Waterdown
** Not intended to solicit clients currently under contract.
All Hamilton Real Estate Districts Combined*
Total Sales: 159
Average Price: $515,125
Median Price: $476,000
Avg Days On Market: 27
A small increase in sales volume, but nothing significant. Prices also recovered from the shot-lived drop the week before, with average price bouncing back above $500k and a typical increase to median as well.
Still no significant change in time-on-market, suggesting a pretty stable activity level.
Average price varies by district. Call to discuss sales data for your specific area, or for a sale price estimate specific to your property. **
*Ancaster, Dundas, Glanbrook, Hamilton, Stoney Creek, Waterdown
** Not intended to solicit clients currently under contract.
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