The Hamilton Spectator - - LOCAL - cfragomeni@thes­pec.com 905-526-3392 | @Car­matTheSpec With files from The Cana­dian Press

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.

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