The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1079 property sales processed through it’s MLS® system in February 2015. This represents a 13.9 per cent increase in sales compared to February of last year.
There were 1450 properties listed in February, an increase of 2.6 per cent compared to the same month the year prior. End-of-month listing inventory was 11.3 per cent lower than last February.
“The record cold month of February didn’t keep the buyers away,” said RAHB CEO Ross Godsoe. “Sales were not only up from last year, but were about five per cent higher than the average for the month of February.”
“While there were more new listings in February of this year than there were last February, new listings are still about 12 per cent lower than the 10-year average for the month,” added Godsoe. “That is having an impact on the listing inventory. The higher than average sales coupled with lower than average new listings plus continued low listing inventory is keeping our area firmly in a seller’s market.”
There are numerous people that want to give up renting for home ownership, but they stand on edge wondering if they are potentially making the worse mistake ever. It is true that buying a home is one of the most important decisions a person will ever make. It is important to be well informed about the home buying process in order to be in the best position to buy the property that is best for one’s personal circumstances. While renting may be “safe” in some aspects, it doesn’t really allow individuals to take full advantage of their ability to build their own wealth. Thus, the following details the many benefits of home ownership in comparison to renting.
One of the biggest benefits of home ownership is the building of equity and personal wealth. People that own their own are constantly increasing their equity when they pay a mortgage each month. As the mortgage is paid down and eventually paid off in full, a home becomes a piece of property that can be used to build personal wealth. When renting, any money that is paid goes to the landlord or the apartment complex. The renter does not obtain any benefit in the long term when paying for use of a property on a monthly basis. However, when buying a home in Burlington, Ontario, the monthly mortgage payment is paying off the 15 or 30 year mortgage that was used to secure the home. This is truly one of the main benefits of home ownership that all monthly payments actually bring people a step closer to building their own wealth.
An additional reason people should consider buying a home is to have security. Owning a home is the only way to truly know where one will live a year, five years and ultimately 30 years from now. People that rent an apartment of home may encounter a number of interesting situations if their landlord is not paying the mortgage on the building where they reside. Numerous people find themselves homeless when they discover that their landlord did not pay the rent on their building. To avoid this form of upheaval, it is best to consider the benefits of home ownership. Once a home is purchased, the buyers can remain in the property as long as they pay their mortgage in a timely manner or until they decide to move.
Buying a home definitely becomes an advantage for people at tax time. Homeowners qualify for a number of tax breaks. This can help to greatly reduce the amount of money that people pay during the tax season. Each year, homeowners qualify for a number of different tax breaks for everything from purchasing energy efficient appliances to being a first time home buyer. Also, some of the tax related benefits of home ownership include the ability to deduct the mortgage interest from income taxes and deduct real estate taxes. These are some of the major tax and financial benefits of home ownership that people should consider.
One of the best things about buying a home is the ability to personalize your property. Everyone knows how picky landlords and apartment complexes can be about personalizing space. Renters are usually forewarned that they are not allowed to add or remove anything from the property. Likewise, most renters are subjected to the ever boring “white walls” that often lack personal style and character. However, homeowners can do whatever they please with their property because they own it. This is one of the best benefits of homeownership. Personalization of the living environment is something that many people want in order to feel comfortable. When buying a home,the ability to personalize and make home feel like a home is something renters will appreciate.
Overall, while renting is a good solution for the short term, in the long run buying a home definitely is more advantageous.
Supported by serious upward appreciation over the past decade, value-conscious homebuyers continue to drive demand for move-up product in the Burlington Area. The greatest trade-up activity is occurring between the $450,000 to $600,000 price point in Burlington. Last year, sales in that segment of the market represented 23 per cent (705 units).
The ﬁgures are expected to increase this year as more experienced buyers move to take advantage of lower interest rates and equity gains. Average price in Burlington has almost doubled in the past decade, rising from $183,442 in 2002 to $360,059 in 2012, for an annual compounded rate of return of close to 7 per cent.
In Burlington, trade-up purchasers are looking to the northwest quadrant of the city where older homes on larger, well treed lots represent good value. Many move-up buyers are willing to undertake renovations, such as updating kitchens and bathrooms, in order to realize ownership in these established areas. As a result, sales in the northwest were up 86 per cent in 2012, compared to one year earlier. Those willing to spend closer to $600,000 are choosing mid-southeast communities in Burlington, south of the QEW.
Property Value Appreciation in Burlington, Ontario
(6.02 % annually)
(6.98 % annually)
Offering some of the most affordable housing in Southwestern Ontario, inventory is expected to be tight this spring in Burlington, with under 100 properties currently listed for sale at the move-up price points.
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