Many experts predicted that the 2016 Hamilton real estate market would cool off slightly compared to last year's record breaking results, which took everyone by surprise. However to date it looks like the market is continuing to produce strong numbers as Hamilton remains the only real estate market in Ontario where demand is outpacing supply.

The Canadian Mortgage and Housing Corporation (CMHC) just released its January 2016 data and to the surprise of many, Hamilton showed a 7.3 per cent increase in total number of sales and an 8 per cent increase in average prices for the month of January.
Mark McNeil, a reporter with the Hamilton Spectator believes that Toronto buyers are helping to fuel the hot Hamilton market. McNeil spoke with James Schwartz, a technology company owner, who recently bought a condo for $268, 000 in the Catharine and King William area of downtown Hamilton. "A condo like that in Toronto would have cost $650, 000," Schwartz told McNeil. "In my opinion downtown Hamilton is gentrifying. There are lots of hipsters and all kinds of people from Toronto moving to Hamilton because it is more affordable."

Richard Harris, a geography professor at McMaster University agrees, telling the CBC that "the big news that everyone's talking about is [Hamilton's] gentrification." Gentrification, which refers to the renewal and rebuilding of an area with the influx of middle-class or affluent people, often displaces current residents who are usually low to middle income earners. The increased interest in Hamilton real estate and resulting gentrification has raised concerns that middle and lower income renters throughout the city will be pushed out as building owners convert their apartments to condos.
Although many Hamilton renters jumped into home ownership last year, which resulted in an increase in the percentage of apartment units available in the city, rents increased by 3.08 per cent to $1,034 per month, CBC News reported. This increase in rent is due in part to building owners improving their properties and passing some of the associated costs along to their tenants. While some buildings are remaining as rental units many are being converted to condos as the demand for affordable home ownership across the city increases.

With the demand for real estate on the rise Hamilton residents will be interested to know that there are a number of ongoing condo projects within the city that are slated to finish in 2016, 2017 and 2018. These include projects on James Street North, 150 Main Street, King Street East, Wilson Street, Charlton Street East and James Street South.
The price of Hamilton condos increased last year, up 14 per cent with the median price of a condominium in the city costing $301,250. Although higher than previous years, Hamilton condos remain much more affordable than a house in the city. According to the CMHC, in January 2016 the average house in the Hamilton area sold for $451, 130.  For Hamilton buyers wanting to get into the market for less than $350, 000 a condo may be the best option. 

Copyright Larry Szpirglas 2016

New down payment rules to take effect on February 15th
In a bid to cool overheated portions of the housing market, Canada Mortgage & Housing Corp (CMHC) is implementing increased down payment requirements for government-insured mortgages effective February 15th.  The change will only affect higher-priced properties in excess of $500,000.  Here's how it will work;
the first $500,000 of purchase price will require the current 5% minimum down payment;
and the portion above $500,000 will now require a 10% down payment. 
So, for example, a $700,000 home will now require a minimum $45,000 down payment in order to qualify as a government-insured mortgage (or 6.4% of the purchase price).

In appreciation and on behalf of our clients, friends and colleagues my partner and I had a beautiful morning contributing to 3 outstanding charity organizations who provide support, solace, comfort, kindness, food, clothing and anything else that you can imagine to people in need in our communities.

These are important and necessary good deeds that occur year round but as we all know, they take on even more significance during this holiday season.

I would like to extend my most hearty wishes to you and your loved ones for a joyous and festive holiday season. I would also like to wish you a very happy, healthy and prosperous year in 2016.  Please drive carefully over the holidays and let's all remember to do whatever we can to help out those who are less fortunate than we are at this very special time of year.

When it comes down to planning your next home improvement project, aside from your family needs you should also be thinking about how these improvements could aff ect your home’s resale value. But not all projects off er a return on time and investment. Here are a few classic renovations that you might want to rethink when it comes to recouping your renovation costs: swimming pools (upkeep and potential liability issues), wall-to-wall carpeting (natural hardwood fl oors are much preferred), over-the-top landscaping (maintenance issues) and garage conversion (the vast majority of buyers will want to use their garage for its original purpose – parking their cars!)

In 2013, Ontario introduced a tax credit to encourage the independence of seniors by making their homes more accessible, functional and comfortable.  The Healthy Homes Renovation Tax Credit lets those aged 65 or older claim up to $10,000 of home accessibility modifications for a tax credit of up to $1,500.  Those living with a senior family member can also qualify for the credit and all income levels are eligible.  Not just any home renovation qualifies.  The modifications should be made to help seniors be more mobile in the home and reduce the risk of injury.  The renovations that qualify for this tax credit also serve as an excellent guide on how to make a home more senior-friendly.  Visit Ontario.ca/healthyhomes for a full list of qualifying renovations and to learn more about the program.

The first impression your house makes on any guests or neighbors happens before they set foot inside.  Especially if you've invested into a beautiful interior, ensure that the exterior follows suit.  Luckily, adding curb appeal to property doesn't have to break your budget.  Here are eight low-cost suggestions:

• Maintain the lawn and garden
• Paint your front door
• Get creative with house numbers
• Replace dated hardware
• Conceal eyesores (garbage bins, air conditioning units, etc.)
• Clean windows and add shutters
• Enhance your garage doors
• Upgrade your walkway 
  

Electronic signatures for real estate transactions have arrived!  
Changes to the Electronic Commerce Act which went into effect on July 1st now permit electronic signatures on Ontario real estate documents.  E-signatures will cut down transaction time thereby making the whole process more efficient.  Currently, agreements of purchase and sale are often faxed, scanned and emailed numerous times over the course of a transaction.  The process can be cumbersome and by the time the final version is signed, the agreement can be difficult to read.  The new technology allows agreements to be filled out on a computer or table, changes can be tracked and documents can be transmitted with ease.  The technology used to support electronic agreements of purchase and sale is very secure, offering peace of mind to consumers.  All in all, a very positive development!

The Ontario Government is proposing a new bill which calls for the creation of a new, non-profit Condominium Authority.  This new body, which would be funded largely by condo owners, would resolve disputes within the province's close to 10,000 condo buildings that can currently result in lengthy and very costly litigation.  Basically, a small fee to condo owners (starting at $1 per month per condo unit) would protect them from bad Boards and from unexpected financial problems within their buildings.  The proposed Protecting Condominium Owners Act represents the largest overhaul in condo legislation in the past 16 years.  Stay tuned for more details as they emerge.