Thursday, September 10, 2015
Judy Marsales, Broker of Record
General Real Estate Advice
The title may imply that the Autumn climate change is upon us. However, while the temperature may be slightly falling, it is also a reflection of the recent stock market upheaval. We, in the real estate industry, are frequently asked the question: How does the volatility in the stock market affect the real estate market?
I am certainly not an economist but I will suggest that there will be a number of homeowners reviewing their financial future – especially the Baby Boomer Plus generation with an eye to equity built up in their home. The real estate market has enjoyed a very strong sellers' market for a long time which has been strongly influenced by a lack of available properties.
An example of this market was identified in the recent RAHB July Statistics showing "End of Month Listing Inventory as -16.8% for Hamilton area; and -17.6% for the Burlington Area." These negative numbers are the difference between available inventory of properties available in 2014 and 2015. Economic theory would suggest when supply falls to such an extent, there will be upward pressure on price given even steady demand.
The relevant question then, is this current world economic ripple going to change the existing real estate dynamics? Will there be a sudden influx of available properties? These are very good questions. The other side of the equation is where do home sellers move which can offer the quality of life they enjoy but loosen up some of their built up equity?
These important considerations are the basis of a very important discussion you may want to start with a professional sales person in our office. I would suggest that if you have been thinking of selling, you may want to take advantage of the opportunities which exist now. Traditionally, October is a very strong sellers market. However, this has not been a traditional year so anything is possible... stay informed. Buying or selling, we are here to support you. Let us provide the facts to balance the emotion. We know real estate. Call us, email us, or drop in to one of our offices.
Business Link Hamilton Article – written by Judy Marsales, Broker of Record, Judy Marsales Real Estate Ltd. Judy is a frequent contributor of articles on the Business Link Hamilton website.