The REALTORS® Association of Hamilton-Burlington (RAHB) expects to see continued steadiness in the real estate market in 2013, according to RAHB president Bruce Moran. He predicted prices will level off in most areas in the RAHB market area*, with some variation from community to community.
In a pre-recorded conversation with RAHB CEO Ross Godsoe, Moran noted that according to the Conference Board of Canada, consumer confidence in December 2012 had risen from the year before, but was still lower than before the 2008-09 recession. Consumers indicated they are still wary of spending on big ticket items such as a car, home or major appliance.
Moran said that despite consumer wariness, “there is lots of good news for the regional economy.” He cited Conference Board of Canada indications that Hamilton was the fastest growing economy in Ontario in 2012 and the fact it ranked Hamilton high on the economic diversity scale. He also noted that Site Selection Magazine and the Real Estate Investment Network both ranked Hamilton highly for investment, and that a record number of building permits were issued in Hamilton in 2012.
Changes to mortgage lending rules last year may have made it more difficult for first-time buyers to enter the housing market, but Moran said that there are “programs out there [like the Home Buyers Plan] for first time buyers. … and there is great opportunity in the Hamilton-Burlington area.”
Moran predicted 13,500 residential property sales in 2013 and 19,500 residential listings. Average sale price is expected to increase around the rate of inflation. One trend which could push prices higher than expected is the migration of home buyers from Toronto. “The Hamilton-Burlington area offers great possibilities for home ownership for people from Toronto who cannot – or choose not to – buy in that area because of affordability,” noted Moran.
Results from 2012 showed that all property listings and sales were down from the previous year, with average sale prices up by 8.3 per cent. Total dollar volume from the sale of all properties was almost $4.959 billion, a 2.1 per cent increase over 2011.
The residential market similarly showed listings and sales down from 2011 and average sale prices up by eight per cent over the previous year. Average days on market dropped from 51 days in 2011 to 44 days in 2012. For much of the year, a seller’s market prevailed.
Godsoe compared last year’s predictions with the final results for the year and noted that listings and sales were down, as predicted, but the average sale price rose eight percent, which was considerably higher than the prediction of slightly above the rate of inflation. The increase, he said, was “probably attributed to the fact that we had fewer listings [and] lower interest rates; obviously sellers took advantage of that.”
The numbers for 2012:
Every community in RAHB’s market area has its own localized residential market which can differ significantly from the overall picture. Please refer to the accompanying chart for residential market activity in select areas of the RAHB market area.
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