New Homes Burlington
It seems whoever you talk to, if the subject isn’t the politics south of the border, talk comes around to real estate. With so many Canadians “in” real estate and considering their home as part of their investment portfolio or at least an investment that they expect some appreciation from, the market pricing of real estate comes under constant scrutiny.
As Burlington is part of our home turf, today’s blog is an update on home prices in the Burlington area. Statistics about new homes in Burlington don’t usually get separated out from the overall statistics, so for convenience we refer to the general info and history tells us that a new home in Burlington will track with a resale, however typically commanding a premium price.
“A quarterly increase of a whopping 12%”
It seems after the new mortgage rules hit things got really screwed with January experiencing a real “spike” and February showing a precipitous decline. Well things have leveled out somewhat and ZOLO reports a yearly uptick of 1.8%; a quarterly increase of a whopping 12% and month over month increase of 7.2% in the overall Burlington home market. While the actual price of homes has almost returned to pre-correction levels the inventory levels in Burlington’s home market has increased surely a bell-whether of some price stability.
Mortgage rule changes coupled with and the inevitable market corrections that happen when things get overheated, may have satisfied the governments concerns of affordability. However many developers and investors have simply jumped out of the rental market causing a dearth in available rental units. Josef Filipowcz and Steve La Fleur explain “ How the Wynne government killed the economics of building new rental units” in their article on the Fraser Institutes web site. They opine….
“Last spring, the Wynne government announced its “Fair housing Plan” which, among other policies, expand rent to all tenants in private rental buildings. In short, this policy limits rent increases to 1.5 per cent annually, following the simple logic that if rents are too high, government can simply cap increases. As appealing as this may sound, it ignores the overwhelming evidence that rent control is a damaging policy—especially for those it seeks to help most.”
In another recent article Bild, the Land developers and Builders association lamented the lack of available new land and the restrictions caused by green belt designation. What seems to be “on the cards” is further upward price pressure in the GTA generally and specifically in our local Burlington New market. So if you are in the market for a “New Home in Burlington” the mantra may be “get them while they’re hot!!”
