August saw a return to the familiar. Previously, we had discussed the slump that occurred in the market from May to July of 2017. Since that time, we’ve seen a significant bounce back. Prior to August of this year, we witnessed a drop in the average sale price of a home in Hamilton over the past few months. We had written previously. “From April-May 2017, prices grew by only 0.3%. In May-June 2017, prices decreased by over 8%. In June-July 2017, prices decreased againby 4.8%, indicating a continued downturn in the market, though one that is now on the upswing.”
In August, we saw the average price increase to $491,266. This is approximately where the average prices were in February-March 2017. August 2017 prices grew by 12.32% over August 2016, and 3.6% over July 2017. This is the first notable market growth we’ve seen in Hamilton since April 2017 (we’re not including April-May 2017 as prices only increased by 0.3%).
This feeds into our previous analysis that while externalities such as the announcement of rising interest rates and the Ontario Non-Resident Speculation Tax (Ontario’s foreign buyer tax) have had their own impact on the market, we also experienced what would typically occur in the summer months in the way of seasonal market shifts. We noted any reduction, shrinkage, or stall in price will, sooner rather than later, be followed by an upswing. August 2017’s growth over July 2017, for instance, is just that and the largest we’ve seen for July-August in 2 years. These are positive signs that the market is rebounding from its short lived downturn. Toronto, meanwhile, due to the size of its market and the, therefore, longer duration for any changes to take effect, season or otherwise, experienced a decrease of 1.87%. In other words, Hamilton’s market is bouncing back quicker than our much larger, more established neighbor.
What does this all mean for you? The media often sells stories, not facts. We’ve been hearing a lot of negative talk and doom and gloom in regards to our local real estate market, likely because August’s monthly stats have just been released, we have announcements concerning interest rate hikes, etc. The fact is, our market is still strong and is showing signs of growth. Don’t let FEAR (False Evidence Appearing Real) sway you from the facts and impact your decision to stay or get into the real estate market.
Here at The Doyle Team, your real estate professionals are committed to keeping you up to date and informed with the facts to guide you to success in your real estate endeavors. Stay connected and informed through our FaceBook page and our “Market Insights” at TheDoyleTeam.ca