Where You Are Buying

by Darrin DeRoches August 28 - September 3, 2014

It amazes me that certain properties are getting a lot of interest and multiple offers on them even though you would not find one Hamiltonian putting an offer on them. Recently there have been a lot of posts on the internet to “expose” properties that have had murders, meth labs or deaths in them. These posts get their information from either police reports or newspaper reports and then they tag them as “undesirable” properties. The interesting part is not these deaths etc. but properties that look so amazing but are on less desirable streets or areas.     This week clients of mine got a great deal on an income property and were willing to go into competition to get it. There were over twenty viewings on the property but when it came to offer day – we were the only ones. The funny part was on the same street, a similar property went through the same thing a few weeks ago. The big question is why? The house needed no work. The area is prime for rentals and as I stood outside waiting for the sellers to sign back the offer I had three people stop and ask me the price, condition etc. Everyone was looking at the property but no one was offering? The simple answer is timing and vision. This area was a mess ten years ago and it is not only an up and coming area it is already there. There are new condos and townhouses being built and sold for top dollar but people from Hamilton still look at the area as old and undesirable. Out of Towners take a look and they see the downtown feel, walkability and great price for what you get. Hamiltonians look at it as old, no parking and overpriced for what you get. My clients will be making money the second they move in and in ten years people will be saying “I wish I’d bought in this area ten years ago!”     On the other hand, the same agent had multiple offers on another cool, Victorian property in an area that will be still rough and undervalued in ten years. If you were to look at both properties and invest your money –the one my clients bought will bring you more return today, tomorrow and definitely in ten years. The house may be smaller but the numbers don’t lie. You have to be aware of the area and be realistic in how the market will grow. Out of Towners were making offers on the other property and their agents just do not know the market. I would not go into Toronto and pick the next great neighbourhood and their agents are coming here without doing their homework.     Be aware of where you are buying and better yet, hire a local broker who knows the market and has a proven track record. Ask the right questions or you will end up in a cool house in a terrible neighbourhood. Remember the three most important words in real estate – location, location, location! 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

Huge Jump In July Market

by Darrin DeRoches August 14 - 20, 2014

The Hamilton–Burlington real estate market saw 1559 property sales during the month of July, which is a 21.5 percent increase over last year’s sales in July. The average sales price broke the $400 thousand mark to $409,538 for the month. The average days on market dropped from 42 days to 36 days. In a nutshell, this means that the market is moving fast and selling for top dollar!     If you look back at the market in recent years, July is typically a little slower and you do not see sales at this level let alone over a 20 percent increase.  At the beginning of the year I wrote that the average house sale will be over $400 grand and it took six months to do it.  At this rate we will have record sales by the end of the year at top prices. The local papers are starting to write about the “condo boom”, which seems a little late to the party but the proof will be in the sales of the units which will take time to prove such a change in our landscape.  If the condo builders keep prices in line then they can compete in this fast moving market when you realize a home is hitting over $400 grand and if they price them in high $200’s then they will sell.  Everything is relative to what the market is doing on a day to day basis.     This week two properties came up on Herkimer and one sold within hours and the other on the weekend.  Both of these properties were priced on the top end of the market and both had about 9 out of 10. Unfortunately they were not what my clients wanted and we will wait for more to hit the market, but August is usually a quiet time and properties are still selling fast and for top dollar. The problem is that not all of the market is moving as fast.  If you listed two homes in the east end on the same street they will sell but it will take some time and more effort. The market is hot in Hamilton but in certain areas it is scorching hot — like the west end.     Last week I had several inquiries on student homes, investment properties, homes in west end, cottages and properties in the east end.  As I said before, August is usually pretty quiet but these calls and listings are showing that the fourth quarter of the year is shaping up to be strong.  Listings are still the issue and quality properties will sell fast! So if you are thinking of selling, take the time to call us to get things ready for a scorching hot end of the year to the real estate market. Be prepared so you don’t get burned! 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.