1. Technology & Television
Of course it's common knowledge now that the Durham Region is booming. There are several factors that help create this hot market, but an overlooked aspect is Technology and Reality T.V. There is now an abundance of real estate apps, websites and online advertisement and the numbers grow daily. It's no wonder we've become so consumed with following market activity as we continue to feed our interest. The rise of reality television based on real estate trading, decorating, and investing has helped fuel this fire of interest and continues to keep us aspiring for our dream homes.
2. Cheap Financing
Lending rates continue to reach new lows and it's no wonder we want to take advantage of this. Owning a home has continued to become more affordable over the past 9 years. Prime rates that were 6.25% (2007) are now 2.7% (2016). Let's put that into perspective; on a home sold for $350,000 with only 5% down and amortized over 25 years your monthly mortgage payment would be $2,255 (2007) and $1,578 (2016). That's a MONTHLY savings of $677!!!
3. "Leftover" Buyers
It's not uncommon to see multiple offers and bidding wars when selling your house. A big reason that's creating this aggressive market is "leftover' buyers". These are active buyers who have now been looking for more than 3 months and who have lost out on more than one property. These buyers are becoming impatient and are willing to overspend and purchase without conditions. Some of these buyers have been in the market since the summer of 2015 and these "leftover" buyers just continue to keep adding to an overwhelming demand in the market.
4. Simple Demographics
Population has always been a key indicator in the Real Estate market. Right now the biggest difference maker is the number of first-time and move-up buyers. Typically, people ages 30-39 fall into this category but with high rental rates in the Durham Region and cheap financing people are hoping to own at an earlier age and looking to move-up to there second home quicker. All of this adds more demand into the market.
5. Mega Projects
A number of mega projects are creating a buzz in the Durham Region. The 12.8 Billion refurbishment of Darlington Nuclear and the 407 ETR expansion are just a couple to mention. These mega projects bring employment opportunities, resources and capital into our communities. Buyers from outside the area can see the overwhelming potential in the Durham Region and are looking to get in at the currently reasonable prices.
These are all contributing factors to the current market in the Durham Region but keep in mind, market activity is changing every minute.
To discuss your future plans or perhaps dive even deeper into understanding the current market just give me a call or send me an email. I'd be happy to sit down with you and discuss this extremely interesting industry that truly impacts everything around us.