MINK REAL ESTATE MARKET UPDATE
THE MINK GROUP REVIEWS WHAT'S HAPPENING IN REAL ESTATE
SPRING / SUMMER 2022
Spring real estate market is expected to be strong but our award-winning team has your back. The spring housing market is regarded as the busiest time to buy or sell a home, and as much as a return to normalcy would be more sustainable, economists say the 2022 spring market will be strong. But we've got your back. In any type of market, we are ready to help buyers and sellers achieve their real estate goals. It has been a great honour to be recognized year after year as realtors of choice for Hamilton and Burlington,
and as a top team for Coldwell Banker Canada. These recognitions mean a great deal, but even more important to us is helping our clients make smart real estate decisions. This magazine includes insights to help you do so. Read on for remarkable statistics on home prices over the last ten years and expert opinions on: alternative options
for
achieving
homeownership;
how selling first can give you more purchasing power; design trends for 2022; or even how summer vacations have changed for a lot of us post-pandemic. With rising prices and low supply, the 2022 spring market is budding up to be one for the books. The insights within will assist you in this market. Plus our award-winning team is just a call away!
A DECADE IN REVIEW Source: Average sales price. Real Estate Association of Hamilton-Burlington 2012 & 2022
Burlington
2022
2012
$580,759
$383,750
$383,999
$288,912
DETACHED
SEMI-DETACHED
TOWNHOME (FREEHOLD)
APARTMENT (CONDO)
$331,115
$1,432,809
$927,165
$929,500
$627,124
$785,338 TOWNHOME (CONDO)
Hamilton
2022
2012 $322,932
$234,698
$314,714
$174,947
DETACHED
SEMI-DETACHED
TOWNHOME (FREEHOLD)
APARTMENT (CONDO)
$228,866
$882,933
$677,189
$854,682
$476,393
$636,754 TOWNHOME (CONDO)
A LOT OF CHANGE IN 10 YEARS. The Burlington waterfront and skyline as we know it today. The pier's construction was finished and opened to the public in June 2013.
The average price for a home in Burlington or Hamilton is over $1 million: a record-high. Ten years ago, the same home would have cost about $400k. For those selling their homes, these numbers are more than promising from a profit standpoint, but for buyers attempting to navigate this market it can be frustrating. Our team remembers what real estate was like years ago and feels for our clients and the challenges they are facing when trying to buy a home in the area today. Rebecca Plouffe says, “There was a time when an extra 5 thousand dollars on an offer would help secure the property.”
Today, it is not uncommon for homes in Hamilton and Burlington to go over-asking; some getting $400,000+ over asking price.
In a seller's market, home prices increase significantly, making it out of reach for many buyers. Agent Audrey Bailey states,
Ashlee Mclean has been a realtor since 2017 and recalls what the buying process was like back then, “Five years ago, we were able to negotiate and present offers with conditions. Now homes are being sold well over asking with no conditions” Year-over-year home prices are increasing by 30%. James Mink attributes this exponential increase to supply and demand issues. “The rising prices are due to the shortage of inventory and the fact that there are more buyers than there are sellers."
"People think realtors prefer this current market - but it is quite the contrary. A balanced market is more preferable, and more sustainable for our current clients and future generations." Now more than ever, our clients rely on us to provide support on how to tackle the current challenges we are facing; and we are happy to do so.
“The average cost of a home in Hamilton and Burlington is $1M, 10 years ago that home was less than half of that.” www.minkgroup.ca | 5
NEIGHBOURHOOD SPOTLIGHT
East Hamilton, ON
Where Is East Hamilton? It depends who you ask, but nowadays, the East End spans East of Gage Avenue to the border of Stoney Creek.
Property value Housing in the East End has always been considered affordable and a hot spot for young families and first-time home buyers. Recently, many Torontonians looking for more property, have migrated to the area and helped drive the average sale price up to $806,102 (January 2022); still, an affordable number considering the average sale price of a detached home in Hamilton recently reached $1 million.
East End Hamilton neighbourhoods Neighbourhoods within the East End are Crown Point, Delta, Homeside, Bartonville, Rosedale, Kings Forest, Normanhurst, McQuesten, Glenview, Redhill, Parkview, Hamilton Beach, Confederation Park, Nashdale, Lakely, Grayside, Kently, Riverdale, Corman, Greenford, Vincent and Gershome.
OUR LOCAL FAV'S... HAMILTON MUSEUM OF STEAM & TECHNOLOGY
GAGE PARK + TROPICAL GREENHOUSE
Also known as Hamilton Waterworks, the historic site is home to two of the oldest surviving Canadian-built steam-powered water-pumping engines. Guided tours are offered and educate visitors about the technology behind them.
Also a filming location for the Netflix series, Umbrella Academy, Gage Park is in the top three parks in Hamilton, in terms of urban parkland. The Tropical Greenhouse provides a warm and lush escape, no matter the season.
VIRTUAL GOLF AT THE ARGYLE
SHOP ON OTTAWA STREET
Enjoy indoor golf, cocktails, trivia and an eclectically cozy vibe at this bar on Ottawa Street.
Ottawa Street is known as the spot to shop for fabrics and antiques. Other spots worth checking out here include East Hamilton Cheese Co, Ottawa Market, and The Painted Bench.
GET INTO THE MARKET BY THINKING OUTSIDE THE BOX. James Mink
Real Estate Broker Coldwell Banker Community Professionals, Brokerage @theminkgroup
Many are being priced out of the market because of the escalating prices. But there are some alternative options available that allow buyers to get into the market and build equity. The real estate market has seen a surge over the last couple of years and although the term 'crazy' has been thrown around quite frequently, it’s not as crazy as one might think. Price appreciation is higher than we are used to seeing, but it’s not that much higher than we have seen on an annualized basis over the last 25 years. Contributing factors include historically low inventory levels, low-interest rates, and a pandemic causing many to re-evaluate their lifestyles. Many are being priced out of their ideal market because of the escalating prices in southern Ontario. But there are some alternative options available that allow buyers to get into the market and build equity. Here are some options to consider to improve your chances of homeownership.
Multi-Family Properties
Most Ontario cities have recognized the need for more housing. Many municipalities now offer two-unit zoning where singlefamily (one unit) housing used to exist. This creates an opportunity for some first-time homebuyers to add a secondary unit to a home that they purchase to assist with the monthly carrying costs of the homes. We are seeing this in 1000+ sq. ft. bungalows where people live on the top floor and renovate/ rent the basement to offset monthly carrying costs and mortgage payments.
Co-Ownership
Family and/or friends have been pooling their resources to purchase a property together that they will all live in. An example of coownership is two different clients purchasing a 4-unit building together. Each client occupies a unit then they rent out the other two units. This fast tracks their mortgage and builds equity.
Family Investment
Some people are lucky in that their family members have assisted them with a down payment or contribution towards their purchase. Positioning the money as an investment (instead of a donation), is attractive to those contributing. The two things that would entice family investors (or any investors in that case) would be an agreed-upon interest payment for the borrowed money, and/or a percentage of equity in the home related to their invested amount.
"it's time to accept reality and start thinking about creative ways to get into the market" Focusing on alternative options allows buyers to increase their purchasing power without the expectation that their salaries will rise to compensate for the difference. Cities outside of North America have for years looked at housing with a multi-generational or a multi-family view and it’s time that we accepted our reality and start looking at homeownership with the same ideals. www.minkgroup.ca | 7
SELL FIRST BUY SMART
“definitive financials give more purchasing power”
Rebecca Plouffe
Real Estate Sales Representative Coldwell Banker Community Professionals, Brokerage @rebeccaplouffehomes
Things change from week-to-week in the real estate market. Selling your home for today's market value, when a more balanced market is forseeable may mean a slightly less competitive experience on the purchasing side. When selling first, you have more control over the terms of your contract; including closing dates. By having a longer closing you give yourself time to find the right property. If you offer on a home that expects a quick closing and you haven't yet sold, that can be stressful and lead to carrying two mortgages for an extended period of time.
With a strategic plan in place to mitigate risk, and keep you in the driver's seat, the rewards of selling your home in this market before purchasing your next one can be impressive.
With definitive financials to provide to your lender, you may have more purchasing power. A firm sale is music to the ears of banks and mortgage companies and alleviates the need for certain conditions of the mortgage. When you find the right property, you can offer confidently and possibly for more than you originally thought possible. It could be the difference between getting your wants, and not just your needs.
higher purchase price before locking in your sale can leave gaps and leave you in a panic to make up the difference before closing.
Your realtor has access to all sorts of 'Plan B's': short-term rentals, storage facilities and leaseback options that could help make this a reality for you so you can capitalize on a hot seller's market and use every dollar possible to secure your next investment.
DOES THIS APPLY TO YOU?
Selling first is not for everyone and each scenario is different. If you think this may be the solution for you. Reach out to one of your MINK Group team members and let's talk strategy.
The price I receive for my current home will determine where I go next. I want to make a move but I am concerned about this market My budget is tight and not sure how to get started
Buying a home in a competitive situation can bring out emotions and cause people to spend more than they planned. Committing to a
What happens if I sell my home and I can't find a place to buy?
LET'S TALK.
RETHINKING
SUMMER VACATIONS Audrey Bailey
Bilingual Real Estate Sales Representative Coldwell Banker Community Professionals, Brokerage @audreybailey.realtor
With the lack of travelling opportunities due to the pandemic, we’ve all had to re-think our summer plans and how to escape. Luckily low-interest rates and the strong real estate market means it has been fairly easy to refinance your home to pull some equity and invest in achieving a “new” way to enjoy summer.
INVESTING IN YOUR BACKYARD Updating your backyard comes with many benefits; no need to sit in traffic before getting to your destination. Huge added perk; investing in your home increases its value. We have noticed houses with fully landscaped backyards and pools sell for up to 30% more.
HOP IN THE POOL Pools were typically a 50/50 want before the pandemic. It never really impacted the value of the property. However, over the last 2 years, pools have been in incredibly high demand. Pool companies have barely been able to keep up. We've noticed that swimming pools now increase the homes overall value. But we are also seeing some creative options that fit smaller budgets too, like stock tank pools for example!
COTTAGE BOUND Many clients have opted on fasttracking their family retreat so they could still gather up with family, enjoy nature, and at the same time possibly earn some income through renting out their cottage. With a shortage of cottages for sale, the cottage market has boomed over the last 2 years.
HOME ON WHEELS Another fun and creative way to travel is to invest in a home on wheels and we are seeing some cool designs and functional spaces. I personally rented one last summer with my family of 5 and saw a lot of Quebec. I highly recommend it. With the pandemic slowly easing, or a least with a new normal in place, it will be interesting to observe what people do. It all comes down to personal goals and investing wisely.
"Homes with pools can receive upward of $200K more." www.minkgroup.ca | 9
PROUD PARTNERS OF YOUR HOME! Enjoy free tickets to the National Home Show this spring, compliments of The MINK Group.
Meet 500+ vendors ready to help you make your space home at North America’s largest display of innovative products, new ideas & great deals for all things home & garden.
2022 DESIGN
TRENDS
2
OUTDOORS IS IN Natural materials
With more time spent indoors than ever before, we’re all craving some time in nature. This has inspired the return of natural surfaces and Ashlee Mclean decorative items. Think warmer wood Real Estate Sales Representative cabinets, natural stone floors, Coldwell Banker Community decorative branches and large trees. Professionals, Brokerage @ashlee.mclean
1
ALL ABOUT PATTERNS
Bold wallpaper, textiles & art
Large and small-scale patterns are being showcased in homes on everything from walls, to flooring, backsplashes and window treatments. If committing to a pattern on your walls is a bit scary, play around with patterns on ‘easy to change’ elements such as accent pillows, area rugs, and drapery.
WHAT'S OUT 1. Open concept floor-plans 2. All white interiors 3. Industrial designs with metals
“we are welcoming more playful and creative trends"
3
INVITING CURVES Rounded furniture & architecture
After many years of seeing ‘straight lines’ associated with modern, contemporary design, we are welcoming more playful and creative trends. Curved profiles are popping up in furniture, lighting, architecture and home accents. Curves reflect our desire for a soft, cozy, comfortable home.
4
WHAT’S OLD IS NEW
Antique & vintage accents
The driving forces behind the desire to showcase vintage pieces in the home: sustainability, availability, and uniqueness. Our environmental impact is top of mind for many when purchasing used furniture and décor. Also, if you’ve placed any upholstered furniture orders in the last little while, you’ve likely faced production and shipping delays, whereas secondhand furniture can arrive in a few days. There is also something to be said about securing a rare or limitededition item.
5
WARM COLOURS Earth tones
Expanding on the trend of seeing more nature in the home - brown is back. Shades and tones from nature like terracotta, chocolate, mustard and sage bring about warmth, earthiness, and calm that feel comfortable and grounding. We are seeing the rise of a warmer ‘minimalism’ so after a few years of our homes being all white, that now seems stark. Designers are opting for warmer bases.
www.minkgroup.ca | 11
The MINK Group is honoured to be recognized. International President's Circle #5 Team of 4+ Members at Coldwell Banker Canada Top Team of 4+ members at Coldwell Banker Community Professionals Brokerage Ultimate Service Award Coldwell Banker Canada Multiple Awards at the Burlington & Hamilton Readers' Choice Awards
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