Ancaster real estate market rode a real rollercoaster in 2017.
The first few months of 2017 were very frenzy with homes sold for prices much higher than the asking prices. It truly was a red hot market.
Then in April, provincial government introduced some measures to cool the market down. Ancaster and Hamilton real estate market went from a strong, prolonged sellers market (with the average time to sell the property was 14 days) to a more balanced market.
Since April 2017 house prices in Ancaster are on decline trend. Sales since April were down and listings are up.
ANCASTER ONTARIO AVERAGE HOUSE PRICES FROM 2006 TO 2017
IN 2017 AVERAGE HOUSE PRICE IN ANCASTER WAS $770,255
APRIL MARKET TURNAROUND IN ANCASTER AND HAMILTON RESULTED IN MORE LISTINGS, LESS SALES BUT YEAR OVER YEAR (2016/2017) HOUSE PRICES INCREASED IN ANCASTER BY 14%.
MOST POPULAR STYLES OF HOMES IN ANCASTER AND THEIR PRICES IN 2017.
3 THINGS TO EXPECT IN ANCASTER HOUSING MARKET IN 2018:
1. Ancaster housing market was a strong Seller Market for a long time. In 2018 we can see the same trends to continue. Buyers will take longer to purchase the property. Homes will stay longer on the market. It will be a balanced market. The number of sales may decrease in comparison to 2017 and the number of listings will increase.
2. We can expect some impact of the stress test that every buyers will have to pass on their mortgage application starting January 1st 2018. Banks will qualify the buyers based on whether they could still afford their monthly payments if interest rates were 2 per cent higher. This could allow fewer buyers to qualify for loans. This plus hike in the interest rate (Bank of Canada already hiked the interest rate by 0,25%) could bring prices of homes in Ancaster lower as sellers find fewer buyers be able to pay premium prices for their properties.
To qualify, buyers might have to lower their prices range by 15%-20% and consider different, cheaper neighbourhood.
3.We predict that house prices in Ancaster might slightly decline in 2018 however, it will not be a significant drop.