(January 23, 2015 – Hamilton, Ontario) The REALTORS® Association of Hamilton-Burlington (RAHB) expects to see average sale prices of residential properties increase by 3.5 per cent in 2015, according to 2015 President Donna Bacher. She predicted a market similar to 2014.
In a pre-recorded conversation with RAHB CEO Ross Godsoe, Bacher noted that low interest rates, low unemployment figures, positive employment gains and a low inflation rate, among other factors, bode well for the coming year.
“Every year we seem to be saying the same thing,” she said. “We’ll see ‘more of the same’ in the coming year.” “More of the same” will be a continued steady residential real estate market with modest increases in listings, sales and average sale price.
Bacher predicted 14,500 residential property sales in 2015 and 20,000 residential listings. Average sale price is expected to increase by about 3.5 per cent. The seller’s market will continue.
(Since the conversation was recorded, the Bank of Canada dropped its rate to 0.75 per cent from the one per cent at the time of recording, indicating that mortgage rates should remain at or drop below current levels.)
Results from 2014 showed that all property listings and sales had increased over the previous year, with average sale price up by 6.1 per cent. Total dollar volume from the sale of all properties was over $6.144 billion, a more than 12 per cent increase over 2013.
The residential market similarly showed listings and sales up over 2013 with the average sale price up by 5.9 per cent over the previous year. Average days on market dropped from 44 to 39 days for 2014. The sellers’ market continued right through the year.
“Our area has been in a seller’s market – to varying degrees – for over 10 years and 2014 was the tightest market we’ve seen in 10 years,” noted Bacher.
Godsoe noted that the average sale price quoted for RAHB can be misleading.
“Our market area covers a huge geographic area, from Burlington, Waterdown and Flamborough down through Hamilton, Grimsby, Caledonia and Dunnvile and numerous points in between – obviously, there is going to be a wide range of average prices,” he said. He cited Hamilton Centre and Hamilton East as examples, where the average sale prices are just over $200,000 and $225,000 respectively. He emphasized the importance of using a REALTOR® when buying or selling a home, because “REALTORS® can help set the right price for sellers and help buyers find the right area and the right home.”
Godsoe compared last year’s predictions with the final results for the year and noted that listings and sales were close to their predicted levels, but the average sale price rose considerably more than the predicted 3.5 per cent.
Every community in RAHB’s market area has its own localized residential market. Please refer to the accompanying charts for residential market activity in select areas in RAHB’s jurisdiction.
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