2012 a good year to buy a home

2012 a good year to buy a home

February Are you thinking about buying a home in the Greater Hamilton, Burlington or outlying areas? 2012 should be a good year for making a purchase as large as a house. How do we know? Economists tell us that low interest rates, relatively low unemployment, good employment prospects and business growth are good signs for the housing market, and they are all present for our local market. The Hamilton-Burlington real estate market will see modest growth supported by the expectation of continued good economic conditions. First and foremost, interest rates are low. They are expected to remain low for this year and perhaps into the early part of next year. With five-year fixed mortgage rates available at under five per cent and six-month to four-year rates ranging well below that, the time seems right to be taking advantage of those low rates to buy a home. Unemployment figures for the Hamilton and Burlington areas show our rate is about one per cent lower than the national average and compare even better to the Ontario average. Our unemployment rate is down half-a-percentage point from last year. We have seen new employers bringing successful and active business to this area recently and we are seeing local jobs maintained as well. Employment stability will increase consumer confidence in our local economy and more confidence in the housing market. Our area is the only area in Southern Ontario expected to show economic growth through 2012. In their Housing Outlook Conference in November of last year, the Canada Mortgage and Housing Corporation (CMHC) cited strong jobs growth in our area as one of the reasons we could expect to see growth. The Hamilton area also scored well with the Real Estate Investment Network (REIN), which named Hamilton as the best place in Ontario and the third best in Canada in which to invest in real estate. By taking into account population growth, major employers, infrastructure and pending major transportation improvements, the REIN found Hamilton to be a good bet. And it is not just our economy that makes 2012 a good time to purchase a home in our area. First time buyers taking advantage of low interest rates will find additional incentives to purchase a home through the land transfer tax rebate for first time buyers and the Home Buyer’s Plan, which allows first-time buyers to withdraw up to $25,000 from their RRSPs to buy or build a home. Affordability is always an issue, and in the Greater Hamilton, Burlington and outlying areas, we have a wide range of prices, properties and options for home buyers. The average house price in our market area at the end of 2011 was $313,430 – that is just the average. There are homes available for under $100,000 in Hamilton and $1 million homes as well. We have mansions to cottages, historic neighbourhoods to brand new subdivisions, acreages to leaseholds. There really is something for everyone in our area. Our area provides the stability home buyers should be looking for when they are purchasing a home, and a wide range of housing options and opportunities. This could very well be the right year to buy a home in this area. Cameron Nolan President, 2012  source; REALTORS® Association of Hamilton-Burlington

Why it’s a good time to buy a home

Why it’s a good time to buy a home

Look no further, Canada is a safe haven in a volatile world

Steady real estate market expected for 2012

Steady real estate market expected for 2012

(January 12, 2012 – Hamilton, Ontario) The REALTORS® Association of Hamilton-Burlington (RAHB) held its annual press conference today and 2012 President Cameron Nolan anticipates the 2012 real estate market will hold steady through 2012, with continued low interest rates and average sale prices that increase slightly above the inflation rate. In his inaugural speech, Nolan noted that consumer confidence is a major area of concern going forward as, according to a survey sponsored by the Economic Club of Canada, a majority of Canadians believe the country is in a recession despite the fact Canada hasn’t been in recession since 2009. Nolan also noted the good news for the local economy –the new jobs brought to Hamilton by companies such as Maple Leaf and Canada Bread and that unemployment in the Hamilton area is about one per cent lower than the Canadian rate of 7.5% and lower than the provincial average. “If we can continue to see stabilization in the employment rate, we expect to see confidence in the greater Hamilton-Burlington housing market,” he said. Nolan noted that the first time buyer market is affected by youth employment, interest rates and government programs to assist with the purchase of a first home. “With the land transfer tax rebate extended to all property types, mortgage rates at historic lows and prices at affordable levels, . . . market newcomers will have time to shop around and find the home that best suits their needs,” he said. For 2012, Nolan predicted that listings will remain at or below 2011 levels as homeowners stay put until the economic outlook becomes more predictable. He also suggested that sales will remain close to 2011 levels, with 12,000 sales in the residential market. Average sale prices will continue to rise at a gradual rate. Area media were on hand to hear Nolan report that 2011 ended with 11,987 properties located in the RAHB market* area being sold through the RAHB Multiple Listing Service® (MLS®). Sales were almost on par with the number of sales in 2010. The average sale price rose 4.4 per cent from last year and continues a steady climb begun in the mid-1990s. In the residential market only, listings were down just over four per cent from last year, but sales were almost even with 2010, with only 15 sales fewer than the previous year. The Sales to New Listing ratio is 73.7 per cent, which indicates that a seller’s market persisted through 2011. The condominium market saw the biggest gains through the year, with a 4.6% increase in sales over last year. Average sale price rose 3.8 per cent in this market. The year was characterized by a late start into the spring market, and then a stronger-than-average market through the latter half of the year. Condo sales were the highlight through much of the second half of 2011. Condominium sales were the only category which performed above the 10-year average; all other categories came in just below average for the year. Every community in RAHB’s marketing area has their own localized residential market which can differ significantly from the overall picture. In 2011, Dunnville (areas 61), Waterdown, Glanbrook, Flamborough and Hamilton East all saw significant increases in numbers of sales over the previous year, while Caledonia, Ancaster and Dundas experienced noticeable decreases in sales. Average sale prices in Burlington, Ancaster, Hamilton East, Hamilton Centre saw the greatest increase in average sale price while Dundas and Stoney Creek showed increases of less than one per cent over the previous year. Please refer to the accompanying chart for residential market activities in other parts of RAHB’s jurisdiction. Figures quoted are for sales and average sale prices of units located in the jurisdiction* of the REALTORS® Association of Hamilton-Burlington and processed through RAHB’s Multiple Listing Service® (MLS®). *RAHB’s jurisdiction includes Burlington, Waterdown, Flamborough and Dundas in the north; Hamilton, Ancaster, Stoney Creek, and Grimsby along Lake Ontario; and extends down to the shores of Lake Erie, including Glanbrook, West Lincoln, Smithville, Dunnville, Cayuga, Caledonia, and Hagersville. -

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