NEW HOME BUYERS FACING 'FEAR OF OVERPAYING'

Back in February, the Hamilton-area housing market was booming like never before. Prices were sky-high, inventory was critically low and homes were flying off the shelves.

But seven months later, much has changed.

Rising interest rates have cooled the local housing market, bringing with them a marked drop in sales, a decline in home prices and an increased number of days on the market.

Realtors Association of Hamilton-Burlington (RAHB) president Lou Piriano said the organization which also serves part of Haldimand - is now seeing buyers who have a "fear of overpaying" - specifically those who are inexperienced or purchasing their first home.

"It's a real thing," said Piriano. "But people have to realize that timing the market is a really bad idea."

Piriano pointed to a pattern of ups and downs in the regional market, which he noted went "bonkers" in 2017, but quickly "flipped the switch" and quieted down for the next two years.

By 2021, sale prices in the region had skyrocketed to an average of $867,560 — marking a more than 25 per cent increase from 2020.

Piriano said it's not clear what will happen with the market next, noting that change isn't linear and can vary by region.

"But, one thing for sure is that it always comes back."

In a recent report, Toronto real estate agency

Zoocasa said buyers should consider the changes that have accompanied the more "balanced market," including the return of conditions and more days on the market.

"This negotiating power means that some of the pressure has been alleviated from buyers," said Lauren Haw, CEO and broker of record for Zoocasa.

Piriano said while fear is normal for those buying a home, the "danger market" of earlier this year has passed and "favourable conditions," such as lower prices, have returned.

"This is a sweet spot," said Piriano. "You just have to go in there with a little bit of faith that over the long run, you're going to do well."