HAMILTON’S JUNE REAL ESTATE NUMBERS:
Average seasonally adjusted house sale price: $537,367, down 11.2 per cent from May’s Average days on the market: 18, up from April’s 14 days
Sales down 21 per cent from June 2016 slightly higher bank mortgage rates and the expected Bank of Canada hike in the prime rate will make much difference.
Mortgage rates went up last week and are expected to go up slightly again in a week or two, but the overall effect is a ¼ per cent increase, says Piriano. “It’s not that much, but it’s the psychology of it that gets people going.”
By the same token, stories about a slowing market gets people thinking they should sit back and wait things out, he adds. This then slows the market more.
O’Neill says that besides the possible cooling effect of Queen’s Park policies, the slowdown could also be from the traditional slow sales in the summer months.
But he insists, “We’re still in a strong market. No one needs to panic. It’s just a more balanced market.”
The Canada Mortgage and Housing Corporation says that GTA house prices have the largest spillover effect on Hamilton than on other cities close to the GTA.
While a one per cent price increase in the GTA leads to a 1.4 per cent increase in Hamilton within a year, an unexpected 10 per cent decrease in GTA prices could lead to Hamilton prices decreasing by 14 per cent within a year.