Look Back To See The Future

by Darrin DeRoches June 20 - 26, 2013

We are breaking records in sales and everyone is jumping on the bandwagon that the bleak outlook for the real estate market in 2013 was completely unfounded. Sounds like the same old broken record if you ask me. At the beginning of the year they always forecast the “big doom and gloom”. Now that we are in the middle of the year, and hitting above average in sales and listings with an increase in values, well let’s all agree it will not be that bad. At the end of the year we will beat all expectations but next year will be a “huge bubble burst!” again, which never happened.     Let’s be realistic about the real estate market and realize that it has to level out and maybe even dip in the near future. The best way to predict the future is to look into the past and see that the market always corrects itself. The mortgage rates are staying low and the rules have been tightened but people are finding a way to still buy more and more expensive homes.  I can hit you with all the statistics but when you read them it is a bit confusing. Sales are literally about one or two homes higher than last year but the average sale price has increased and that is the real news. Get used to the fact that Hamilton is not a second class city and people are investing in our real estate and companies are moving from Toronto and Burlington and new companies are sprouting up. Why?     Hamilton is the only real city next to Toronto and you can get so much more for your money in Hamilton. Whether it is commercial, land or residential, our values are holding strong. Barton Street just had a successful “open house” on their street and people are taking notice. Sure the street is a little rough but one by one it will become better and better. I had a past client contact me yesterday to look at properties in Hamilton and his big question was where to buy? He is not ready to buy until next year and by that time prices will still be rising and he will be priced out of certain areas. Look at James Street. There are properties listed for over a 1.2 million dollars and quite frankly it seems a little high. Five years ago those same properties would be crazy to ask for half of that price and no one would even think about buying them. Barton Street has a long way to go as does the rest of James Street but the new Go station and new football stadium will help tie these areas together and you will see a big difference.     Five years from now the waterfront, James Street and Barton Street will be drastically different and if you buy into it now you will be able to double your investment. Quality real estate will always sell or rent for a high price so buy low today and sell high in five years. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.