Since the beginning of the pandemic, the media has focused on two main events – COVID-19 and Real estate prices.

So much about the housing market has changed in the last few years.

In the Hamilton area, we have lived through the most dynamic real estate market ever – predominately supported by the basic economic theory of “Supply and Demand.”

The question the Judy Marsales Real Estate Ltd. Brokerage is often faced with is, “Why is there such a lack of supply?”

While there is no simple answer, one must look at a few of the basic factors affecting the market:

• The lowest interest rates in history for mortgages.
  • At the beginning of the pandemic, the Bank of Canada lowered the key interest rate to protect the economy, which in turn allowed for lower borrowing costs on variable rate mortgages.
• There is a demographic shift going on.
  • CMHC identified that for the first time, “Millennials” outnumber the former dominant demographic, “Baby Boomers.” However, “Boomers” are less likely to downsize than any generation before. Instead, they are choosing to “Age in Place.”
• Extreme increases in housing value in neighbouring cities such as Toronto.
  • The concept for young buyers in these hot markets developed into a “drive until you can afford to buy” mentality that spurred a movement of people away from the high Toronto prices.

All of this has created a market “Log Jam” in that a homeowner cannot sell their home unless there is somewhere else to move.

For some buyers, this can be frustrating. They have this wonderful opportunity to benefit from the amazing increase in their home’s value yet have fewer options to re-buy into the market.

This is the time when one should review all of their options going forward. For example, it is healthy to stay in your own home as you get older, provided you have the support systems in place to enable your comfortable living.

Are you thinking about sharing your home with other family members? Would you prefer to sell and rent while the market adjusts? So many questions!

All these questions signal that it is also the time when buyers and sellers need the best advice available. If you are thinking about making a change, you may want to speak to your lawyer, accountant, and real estate office.

Judy Marsales Real Estate Ltd. Brokerage can provide you with a no-cost “Opinion of Value” for your home so that you can make smart plans.

Keep in mind that the market can change quickly, so you always want to have a “fallback plan” in place whether you are house hunting or considering selling. Judy Marsales Real Estate Ltd. Brokerage is here to provide the latest information—call, text, or email. They are ready to help you make the best decisions in today’s hectic housing market.

Stay healthy, stay organized, and enjoy Life.