Recent changes in the Hamilton market have forced both buyers and sellers to re-evaluate their strategies. Prior to May of this year, prices grew at an average of 2% per month. There were small slumps, such as the June-July 2016 period where the average price dropped 3.27% from the previous month, or the November-December 2016 period where they decreased again by 2.96% from the previous month. These decreases can largely be attributed to seasonal changes in the market – there is usually a slowdown in the summer, when prices often still increase, but in smaller increments than the rest of the year. As was the case with June-July, they can also decrease.
These past few months, however, have marked a significant shift in the market climate. 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 again by 4.8%, indicating a continued downturn in the market, though one that is now on the upswing.
Year-over-year, prices continue to grow, with 2016 and 2017 individual months demonstrating an average growth of 22.52% from the same month the prior year (year-over-year). Recent summer months show evidence of continued seasonal trends, with June and July 2017 demonstrating year-over-year growths of 12.78% and 10.97%, respectively. July 2016 demonstrated somewhat similar trends, with prices only increasing by 15% from the year before, and with June-July 2016 indicating a 3.27% decrease month-to-month. These changes are further reflected in the Toronto market, with prices decreasing 6% during June-July 2017 and increasing by only 5.13% from July 2016 to July 2017.
What this means is that while externalities such as rising interest rates and the Ontario Non-Resident Speculation Tax (Ontario’s foreign buyer tax) have had their toll on the market, much of what is currently occurring can also be attributed to seasonal shifts in the market. Buyers tend to be far more eager to search and buy in the spring and fall months, and sellers tend to spend the winter and summer months preparing for a listing.
August will likely be another month where we see the average price decrease, however we believe it will be less then the previous two months. We are hopeful September will be the month we see some positive changes in the market, given the seasonal factors are removed and the public’s understanding of the recent market shifts are better understood.
The Doyle Team, your real estate professionals, have consistently proven successful results year over year regardless of market conditions. We know this city, we know this market and we aim to exceed your exceptions every time. We’ve developed a team of professionals to service residential, commercial, new construction and investment properties.
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