March Sales Statistics

The REALTORS^® Association of Hamilton-Burlington (RAHB) reported 1268 property sales were processed through the RAHB Multiple Listing Service^® (MLS^®) system in March.  This represents a nine per cent increase in sales compared to March of last year.

There were 1885 properties listed in March, a decrease of 1.3 per cent from the same month last year.  End-of-month listing inventory was 12.9 per cent lower than last year at the same time.

The average sale price of $409,684 was 4.3 per cent higher than last March.

“The low inventory of listings is still the story,” said RAHB CEO Ross Godsoe.  “A one per cent decrease doesn’t sound like much, but last March’s listings were down almost 10 per cent from the year before that.  Put in context, listings this March were 8.7 per cent lower than average for the last ten years.  Low inventory coupled with sales that are almost at the 10-year average are driving the price increase and the seller’s market.”

Seasonally adjusted* sales of residential properties were 2.4 per cent higher than the same month last year, with the average sale price up seven per cent for the month.  Seasonally adjusted numbers of new listings were 8.4 per cent lower than the same month last year.

Seasonally adjusted data for residential properties for the month of March, 2014:

Actual overall residential sales were 8.9 per cent higher than the previous year at the same time.  Residential freehold sales were 6.5 per cent higher than last year while the condominium market saw an increase of 19 per cent in sales.  The average price of freehold properties showed an increase of seven per cent over the same month last year; the average sale price in the condominium market increased three per cent when compared to the same period last year.

The average sale price is based on the total dollar volume of all properties sold.  Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.

The average days on market decreased from 44 to 37 days in the freehold market and from 43 to 39 days in the condominium market.

Every community in RAHB’s market area has its own localized residential market.  Please refer to the accompanying chart for residential market activity in select areas in RAHB’s jurisdiction.

January 2014 Stats

The REALTORS^® Association of Hamilton-Burlington (RAHB) reported 781 property sales were processed through the RAHB Multiple Listing Service^® (MLS^®) system in January.  This represents a 2.8 per cent increase in sales over January of last year.

There were 1496 properties listed in January, a decrease of 9.5 per cent from the same month last year.  End-of-month listing inventory was 12.6 per cent lower than last year at the same time.

The average sale price of $395,445 was 9.3 per cent higher than last January.

 “The cold weather certainly didn’t keep buyers away,” said RAHB CEO Ross Godsoe. “Residential sales are higher than both last year and the average for the last ten years.  The lower inventory of listings coming out of last year and lower-than-average new listings in January kept the seller’s market going.”

Seasonally adjusted* sales of residential properties were 2.7 per cent higher than the same month last year, with the average sale price up 10.3 per cent for the month.  Seasonally adjusted numbers of new listings were 4.4 per cent lower than the same month last year.

Seasonally adjusted data for residential properties for the month
of January, 2014:

Actual overall residential sales were 3.6 per cent higher than the previous year at the same time.  Residential freehold sales were 4.6 per cent higher than last year while the condominium market saw a decrease of just under one per cent in sales.  The average price of freehold properties showed an increase of 11 per cent over the same month last year; the average sale price in the condominium market increased 6.3 per cent when compared to the same period last year.

The average sale price is based on the total dollar volume of all properties sold.  Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.

The average days on market increased from 53 to 54 days in the freehold market and from 55 to 56 days in the condominium market.

Every community in RAHB’s market area has its own localized residential market.  Please refer to the accompanying chart for residential market activity in select areas in RAHB’s jurisdiction.

*Seasonal adjustment removes normal seasonal variations, enabling analysis of monthly changes and fundamental trends in the data.

2014 Real Estate Forecast

The REALTORS® Association of Hamilton‐Burlington (RAHB) expects
to see average sale prices of residential properties increase by 3.5 per cent in 2014, according to president
Tim Mattioli. He predicted a market similar to 2013.

In a pre‐recorded conversation with RAHB CEO Ross Godsoe, Mattioli noted that despite a drop in
consumer confidence, continued low interest rates and stable unemployment rates in the Hamilton CMA
bode well for the coming year.  
 
“We can be cautiously optimistic for 2014,” he said.  “We’re looking at a pretty good year again.”

Mattioli predicted 14,000 residential property sales in 2014 and 19,500 residential listings. Average sale 
price is expected to increase by about 3.5 per cent.

Results from 2013 showed that all property listings and sales had increased over the previous year, with
average sale price up by 6.5 per cent. Total dollar volume from the sale of all properties was over $5.474
billion, more than a 10 per cent increase over 2012.
 
The residential market similarly showed listings and sales up over 2012 with the average sale prices up by
6.7 per cent over the previous year. Average days on market remained steady at 44 days in 2013. For much
of the year, a seller’s market prevailed.

Godsoe noted that the average sale price quoted for RAHB can be misleading.  “When (people) hear the
REALTORS® Association of Hamilton‐Burlington and they hear that average sale price, they think that’s the average sale price of a house in Hamilton,” he said.  He noted the average sale price for the city of
Hamilton is $307,000 and “in many areas in our marketing area, the average sale price is under $200,000
and also in some areas we have an average sale price of over $400,000.”  He emphasized the importance of using a REALTOR® when buying or selling a home, because “they know the market, they know the
communities, they know the areas.”

Mattioli noted that the year began with a reduced inventory of listings carried over from the previous year,
and the lower inventory was felt throughout the year.

Godsoe compared last year’s predictions with the final results for the year and noted that listings and sales
were close to their predicted levels, but the average sale price rose considerably more than the predicted
rate of inflation.

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What type of Landlord do you want to be?

I encourage just about everyone I meet to jump into the game and become a landlord. I did it myself three years ago, and I am currently looking for my fourth property. Rentals aren’t one-size-fits-all. Before taking the cheques to the bank, you need to decide what kind of landlord you’re going to be.

Student Rentals

Student rentals are my bread and butter, and where I started my real estate investment career. There’s great income potential here, if you’re willing to roll up your sleeves and do the work.

PROS:

• Big rental potential: You can rent by the room, which increases your bottom line.
• Expensive finishes not needed: No need for granite and hardwood here; units need to be functional, clean, and well done, but high-end materials won’t give you a return on investment.
• School nearby = guaranteed tenants: I’ve yet to find a university/college town that didn’t lack student housing. You’ll have no problem finding tenants.
• Parents: You can ask that parents co-sign the lease, so the default rate is very low.
• Predictable rental cycle – school year starts, school year ends: Leases start and end at the same time every year, which means only having to deal with it once every 12 months.

CONS:

• High/constant turn-over: You might only need to worry about renting once a year, but depending on how many rooms you have available, that still means a lot of applications and a lot of screening.
• Not a lot of pride in rentership: It’s true, students aren’t always great a taking care of their temporary home, and not always the most responsible tenants. This isn’t always the case, but it’s something to keep in mind.
• Maintenance:  Student rentals require a lot of it, mostly due to turnover and neglect.
• Tenants require more “babysitting”: You have to keep in mind that your tenants are often leaving mom and dad’s house and moving into yours. This means that even simple things like changing light bulbs or tripped breakers may result in a phone call or house visit.
  
  
  
  
  
  
  Executive Rentals
  Whether it’s a businessman in town for work, or movie crews on location, executive rentals can bring in big bucks, but also cost more up-front.
  PROS:
  • Big money: Executive rentals can demand double or even triple what the same space would rent for in a regular rental situation.
  • Higher profile tenant: Generally speaking, you don’t have to be concerned about the quality of tenant you’re getting here.
  • Guaranteed income: Depending on our provincial rules, you may be able to collect all your rent upfront (if it’s a short-term lease) and collect a damage deposit (refer to your provincial policies regarding landlord-tenant relationships).
  • Profit: You usually only need to rent for half the year to make one.
  CONS:
  • High turn-over: Most executive rentals are short-term leases, so turn-over is constant.
  • Unpredictable: Because of the nature of executive rentals, it won’t always be rented and there’s no certainty about when it will be.
  • The bells and whistles: High-end finishes, nice furniture, linens, towels, dishes -- they all need to be included. Throw in utilities, cable, internet, and regular cleaning service, and costs really start to add up.
  • Posting, applications and screening: Because of the high turn-over, landlord of executive rentals are constantly in a cycle of posting the apartment for rent, reviewing applications and screening tenants. Some people hire a placement/management company to take care of this, but if you choose to do so, that’s another cost that eats into your bottom line.

Secondary Suites

Secondary suites are apartments that exist within your own home, and are probably the most common rentals.

PROS:

• Longest term rental scenario: Tenants are likely to stay longer and take better care of the space.
• Passive rental: Secondary suites don’t take a lot of time and energy.
• Instant rental situation: You don’t have to purchase another property to be in rental situation with a secondary suite. Have a basement you can make into a legal apartment? Great, you can be a landlord!
• Return on investment: Adding a secondary suite typically adds a lot of value to your property.
• High demand: When done legally and safely, these types properties attract tenants everywhere. You don’t have to be downtown, like an executive rental, or near a school, like a student rental.

CONS:

• Lower cash flow: You won’t bring in as much rent as you would with other types of properties.
• Learning to share: You’ll be sharing your home with other people, which can be inconvenient at times.
• Reno time: Unless there’s a secondary suite already existing, putting one into your home requires a significant renovation and may also require a zoning change.
  
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  Article available at HGTV.ca

November 2013 Stats

The REALTORS^® Association of Hamilton-Burlington (RAHB) reported 1078 properties sold through the RAHB Multiple Listing Service^® (MLS^®) system in November.  This represents an 11.1 per cent increase in sales over November of last year.

There were 1298 properties listed in November, an increase of nine per cent over the same month last year.  End-of-month listing inventory is 6.1 per cent lower than last year at the same time.

For the first time this year, the average sale price did not show an increase compared to the same month last year.  The average sale price in the residential market was virtually the same as last November; a decrease in the average sale price in the commercial market accounted for an overall decrease in average sale price compared to last year.

 “We have become so used to seeing regular increases in average sale price that the slight drop in November seems out of place,” said RAHB CEO Ross Godsoe. “And in some ways it is – the commercial market has larger swings in price that can affect the overall picture.”

Seasonally adjusted* sales of residential properties were 17.2 per cent higher than the same month last year, with the average sale price up two per cent for the month.  Seasonally adjusted numbers of new listings were 13.4 per cent higher than the same month last year.

Actual overall residential sales were 13.2 per cent higher than the previous year at the same time.  Residential freehold sales were 12.6 per cent higher than last year and the condominium market saw an increase of 15.6 per cent in sales.  The average price of freehold properties showed an increase of less than one per cent over the same month last year; the average sale price in the condominium market decreased 3.7 per cent when compared to the same period last year.

The average sale price is based on the total dollar volume of all properties sold.  Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.

The average days on market decreased from 50 to 46 days in the freehold market and increased from 47 to 48 days in the condominium market.

Year to date, listings are up 1.8 per cent compared to the same period last year, while sales are 2.7 per cent higher.  The average sale price for the period is 6.5 per cent higher than the same period last year.

“The real estate market in the Hamilton, Burlington and outlying areas continues to be a strong, stable market,” added Godsoe. “Residential sales are about seven per cent above the 10-year average for the month of November.”

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September Stats - Prices up 6.7% and Sales up 32.9%

The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1207 properties sold through the RAHB Multiple Listing Service® (MLS®) system in September.  This represents a 32.9 per cent increase in the number of sales over September of last year and is only one sale shy of the September record of 1208 sales set in 2009.

The average sale price of $392,013 was an increase of 6.7 per cent over the previous September. There were 1953 properties listed in September, an increase of 5.8 per cent over September of last year.   End-of-month listing inventory is 6.8 per cent lower than last year.

 “Sales and listings for the month of September were both well above the 10-year average for the month,” said RAHB CEO Ross Godsoe.  “Even though there was an almost-six per cent increase in listings, inventory continues to be lower than last year at this same time.”

Seasonally adjusted* sales of residential properties were 21.4 per cent higher than the same month last year, with the average sale price up eight per cent for the month.  Seasonally adjusted numbers of new listings were 1.4 per cent higher than the same month last year.

Seasonally adjusted data for residential properties for the month of September, 2013:

Actual overall residential sales were 31.1 per cent higher than the previous year at the same time.  Residential freehold sales were 34.6 per cent higher than last year and the condominium market saw an increase of 16.7 per cent in sales.  The average sale price of freehold properties showed an increase of 10.1 per cent over the same month last year; the average sale price in the condominium market decreased seven per cent when compared to the same period last year.

The average sale price is based on the total dollar volume of all residential properties sold.  Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.

The average days on market remained at 44 days in the freehold market and decreased from 50 days to 42 in the condominium market.

“This is the first time since the first quarter of the year that we saw a more balanced market,” added Godsoe.  “Whether it will continue that way is a good question – we’ll have to see what the next few months bring.”

Year to date, listings are up 1.3 per cent compared to the same period last year, while sales are 1.6 per cent higher.  The average sale price for the first three quarters of the year is 7.7 per cent higher than the same period last year.

The numbers for the month of September 2013 compared to September 2012:

Every community in RAHB’s market area has their own localized residential market.  Please refer to the accompanying chart for residential market activities in select areas of RAHB’s jurisdiction.

*Seasonal adjustment removes normal seasonal variations, enabling analysis of monthly changes and fundamental trends in the data.

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