Tuesday, October 31, 2017
Local Hamilton Market Conditions
Change, change, change… sometimes welcomed changes and sometimes scary. The past few months have witnessed a dramatic shuffle from one of the strongest “sellers’ markets” to a market identified as “more balanced”. What does all this mean??
Let’s reduce the confusion to basic economic theory which talks about supply and demand. This economic theory relative to real estate can suggest that when a market has approximately 3 listings for every sale, we are experiencing a balanced market. In the past year or so, our inventory of available homes for sale was dangerously lower then that equation. At times, inventory of available homes was fewer then one home to one sale which identified as a very strong sellers’ market. Almost everything offered for sale, sold in a short period of time with considerable activity in the form of multiple offers or bidding wars.
However, real estate times have changed… inventory has dramatically increased and buyers are nervous about the daily economic information coming their way. Young buyers are concerned about employment certainty, interest rates, and life styles. Baby boomers and older are concerned about their future lifestyle changes. Concerns may be around retirement income, moving potentially to a recently built condo that is too small for their comfort, or the cost of seniors’ accommodation in a retirement home which exceeds their budget.
The good news is that a more balanced market affords everyone an opportunity to consider all the necessary facts and to make a good decision for their future before jumping into something. Informed decisions make for less stress. We are happy to review all the market considerations and statistical data to inform your decision and to help you move forward just call us, email us, or drop by one of our offices!