The Bubble ... THE BUBBLE! ... CRASH, BOOM, BAH!

Well, 2014 is upon us and the Spring Real Estate market will be starting soon. When I look back on last year and the business that was conducted in the Hamilton / Burlington area, we see a robust and active Real Estate market. Prices were up, transactions were high, people were buying and selling. All this, despite rather aggressive (IMHO) media "reporting" on the inevitable "crash", "downturn" or "bust" of the Canadian Real Estate bubble. (Ironically, the most prolific reporting was done by the same Media Conglomerate that decided to open their very own Real Estate Brokerage, right in the middle of this "inevitable" downturn. That however, is a topic for another blog post.)

So what can we expect for this year? Well, nobody has a crystal ball, but a recent 2013 Survey by C.A.A.M.P. (www.caamp.org), the Canadian Association of Accredited Mortgage Professionals performed by Maritz RESEARCH has some interesting insights:

The study reports that despite the "often intense, usually negative narrative" reported by the media "the Canadian public has remained surprisingly positive, optimistic, and resilient" and that "the vast majority continue to believe that Canadian real estate is a good long-term bet." 

• 80% of Canadians agree that "mortgages are 'good debt' "
• 84% say "real estate is a good long-term investment"
• 69% are "optimistic about the economy in the next 12 months"

Also of interest when it comes to house pricing increases is that people have become more reasonable when it comes to rapid appreciation of their home's resale value. 41% expect "slow growth" in pricing, 27% expecting prices to "remain stable" while only 1 in 10 still expect the "bubble to burst". As a Real Estate Professional, this outlook is encouraging. People will no longer look to their home as a glorified credit card, using it to support a life style that they can't afford. Instead, people will making buying and selling decisions based on their lifestyle and their needs. This results in smart and sustainable financial decisions for their family.

Do you have questions about the Hamilton / Burlington Real Estate market?

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