Team VanDinther

2018 March Real Estate Activity Stats for Burlington, ON

The REALTORS® Association of Hamilton-Burlington (RAHB) has released their stats for March 2018 and there were 1099 sales processed, which is showing that sales for all property types combined (residential, condo, commercial) were 38.6% lower compared to previous year period and 18% lower compared to 10-year average for the month. Average sales price was 14.8% lower and there were 13.5% less listings.

“Our area experienced similar cooling off as is being reported by other real estate markets in the Golden Horseshoe area,” said RAHB CEO George O’Neill. “Local sales were lower not only compared to March of last year, but also compared to the 10-year average for March.”

“This is the first time in awhile that we’ve seen the average sale price lower than the same month the previous year for both freehold and condominium properties,” added O’Neill. “The condominium market is experiencing less of a drop – not even two per cent – and in fact, the median sale price is still almost one per cent above where it was last year.”

“For the general downward trend in the numbers comparing March 2018 to March of 2017, we have to keep sight of the bigger picture,” noted O’Neill. “The sales-to-new-listings ratio is still at 60 per cent for the residential market, which is generally considered the line between a balanced market and a seller’s market. In addition, the average days on market is at a comfortable level, providing buyers and sellers time to make informed decisions.”

RAHB March 2018 Stats 1
RAHB March 2018 Stats 2
RAHB March 2018 Stats 3

For a complete report please visit http://www.rahb.ca/2018/04/rahb-realtors-release-march-statistics/

Looking to sell your home? Or buy a first time home, or move up, or downsize? Let Lori VanDinther, RE/MAX Sales Representative guide you through the process and help you make the right moves. With over 23+ years of successfully selling real estate in Burlington/Hamilton area, Lori has the experience and market knowledge. Contact Lori today.

Buying a Home in Canada in 2018

The bottom line is this, despite the new mortgage stress testing, which took effect on January 1st this year, you can still buy a home!

What’s this stress test?
Stress testing is a best practice risk management tool. Stress tests are used by financial institutions to gauge how their business would fare under extremely difficult conditions. Basically if the Bank of Canada raised the interest rates by say 2% over a short period of time, how would this affect people’s ability to pay off their mortgages? Can they still pay it? or will they default, causing a economic crisis?

Who is dictating this?
The Office of the Superintendent of Financial Institutions Canada (OSFI) is an independent agency of the Government of Canada, established in 1987 to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.
On October 17, 2017 OSFI released new guidelines for the mortgage industry in Canada. Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.
“These revisions to Guideline B-20 reinforce a strong and prudent regulatory regime for residential mortgage underwriting in Canada,” said Superintendent Jeremy Rudin.

Why is this happening?
Of course this make it harder to be qualified for a larger mortgage (debt), but for good and logical reasons. According to Statistics Canada, household credit market debt as a proportion of household disposable income is 170.4. This means there is a $1.70 in credit market debt for every dollar of household disposable income. So with the Canadians debt to income ratio being historically high, especially in Greater Vancouver Area and Greater Toronto Area, any fluctuations in bank interest rates will shoot up the mortgages and many mortgage owners may not be able to keep their homes. Kind of what happened in 2008 in the US – an economic disaster. So to avoid this, when a bank tries to qualify you for a mortgage, they will offer you a mortgage rate but add 2% to that. Of course this makes your home purchase power less, but it makes your more robust to interest hikes.

So now what?
You can still buy a home. You just have to change your game plan. For one you need to get your finances in order. This means work and save your money, watch your spending. You simply need to make some lifestyle changes to allow you to save more. Don’t buy too much on credit, aka money you don’t have. Do you really need that latest phone or car? Do you really need 10 pairs of jeans? Do you need multiple expensive vacations? In a perfect world, everyone wants everything. But you have to ask yourself, what is more important to you? If having a home is the answer than that is your goal and reason to sacrifice other things to be able to save a larger down payment.
Second, you may not be able to get the newest, biggest, nicest house in the best area in the city. You may have to consider condos and townhouses, instead of fully detached home which tend to run higher in price. You may have to expand your search, which mean checking out suburbs. Sure that extra 10-15 minutes drive from work when you’re already so tired is a major pain but you can get more land and bigger house. So in the end it’s about sacrifice and what’s more important to you.

Lastly, no mater if you’re buying a home or selling a home, you definitely should hire a real estate agent. A trusted professional that will be able to guide your thought the whole process. Buying or selling a home is a serious thing and trying to do it all yourself is highly not recommended. If you’re in the Burlington real estate market, be sure to contact Team VanDinther – Lori and Kim. They provide exceptional service with integrity, experience, knowledge and skilled negotiating.

The 2017 Profile of Home Buyers and Sellers

The following infographic based on an annual survey, put together by the National Association of REALTORS®, shows some interesting statistics about home buyers and home sellers.

  • 34% of all home buyers are First-time home buyers
  • 54 is the age of repeat home buyers, which has been increasing
  • There is a decline in married couples buying homes
  • There is an increase in single females buying homes
  • 8% homes are sold by the owner
  • 87% use an agent when buying a home
  • 89% use an agent when selling a home
  • Home are 3 weeks on market
2017 profile of home buyers and sellers
Click here to view size

Looking for a professional and dedicated Burlington Real Estate Agent? Let Lori VanDinther and her team help you sell your home for more money or help you find buy an ideal home with ease. Or both!