August suggests real estate sales rebound

Hamilton’s real estate association says August results suggest the local market is rebounding after several months of plummeting sales caused about by government stabilization moves to slow down skyrocketing prices.

Realtors Association of Hamilton-Burlington CEO George O’Neill says, “August was the first month this year that sales were closer to the 10-year average.” Earlier this year, he said, sales had been seeing doubledigit declines compared to the year before.

“I think there was uncertainty in the market and when there is uncertainty buyers will pull back, and sellers who have the option to not sell will not sell,” he said. “If you don’t have the supply, buyers can’t buy and if buyers are concerned than they will wait.”

Sales of all property types last month were nearly identical to the year before — 1,138 sales in August, 2018 compared to 1,139 in August, 2017.

Residential sales increased by 0.6 per cent increase — 1,089 this August compared to 1,083 in August 2017.

O’Neill feels that the declines earlier in the year were caused by government measures that included new provincial taxes on vacant properties and a nonresident speculation tax.

As well federal government in January implemented a financial stress test for buyers for federally-regulated lenders, which made it more difficult for some wouldbe buyers to get mortgages.

“I do think we’ve worked through that. And now people are back to work and back to school, and we are starting to see an uptick in the market going into the fall,” said O’Neill.

The average price of residential home in Hamilton declined by 2.4 per cent — $540,891 last month compared to $554,173 the year before.

O’Neill said he expects the rebound in sales to evolve into rebounded prices in the coming months as the market returns to more normal results.