It is official!  We have completed a cycle in the Real Estate Market that began in 1990 and which peaked in 2007.  Our most recent statistics show that the average home price for Hamilton Mountain and Ancaster is slightly down from that of the same time a year prior.  We will continue to have some price adjustments as market conditions such as supply adequately satisfy demand for the most part.  Market indicators suggest that we will have an active market and a healthy balance for buyers and sellers.

The demographics of the later 1980’s produced an over inflated escalation in house prices in an unprepared market.   Demand clearly out paced supply as the so called “Baby Boomer” generation came through the system with younger families.  In 1990, inflated prices and 14% mortgage rates combined to contribute to a yearly decline in house prices that took until 1995 to bottom out.

The market is in an adjustment period.  However, with mortgage rates available at 5.25% for a fixed 5 year term and a reasonably good economy, I do not expect a decline as drastic to that of the early 1990’s.  In addition, we are experiencing a truer market where the cost of new construction would be hard pressed to supply a new home for less than a comparable re-sale home at today’s prices.

There are some interesting trends in the market place.  For one, the same “Baby Boomer” generation is beginning to downsize.  Immigration applications to Canada continue to surge and confidence in our economy to weather shifts and to prosper remains strong.  The residential market is relative in that selling for less means buying for less.  Bottom line, it really is a good time for most people to consider a Real Estate move if they have reason to do so.

I would be pleased to meet with you to discuss the market in more depth and to consult with you as to whether it is a good time for you to make a move.

Please feel free to contact me anytime.  All the Best!!