Comparing sales from August 2011, we are seeing a drop in the number of sales (-13%) and number of new listings(-8.4%) , but we are also seeing a 13.3% increase in the average sale prices. The low housing inventory has created competition among buyers for properties causing higher sale prices. The low inventory has also caused the average Days on Market to drop from an average of 55 days to 44 days.
CREA chief economist Gregory Klump has said that we are now seeing the first clear indications of the effect the recent changes to mortgage regulations are having. The new regulations were aimed at cooling the hot market and it seems to have worked. By shortening the amortization from 30 years to 25 years, it has made homeownership inaffordable for some, especially the first time buyers.
The condo market is also indicating a strong Seller’s market as we are seeing more sales than new listings.
We are seeing a record low in number of new listings and we are finding that buyers a more willing to wait for the perfect property. Properties that are updated and renovated tend to sell quickly, and in certain areas, we are witnessing offer hold backs and multiple offer situations. Properties that require significant upgrading and modernization, especially in kitchens and bathrooms, tend to spend more time on the market well beyond the area averages.
It should be noted that these statistics are based on all sales of residential properties in the Hamilton/Burlington area. These statistics should not be taken as an indicator of anyone’s individual property appreciation as different areas and neighbourhoods are reacting differently to market conditions.
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