By Staff
January 28, 2015
BURLINGTON, ON
Rocca Sisters & Associates have produced a bullish report on real estate in Burlington, They report a gain of 8.6% year over year for freehold homes in Burlington. They add that sales volume was down 4% over the same period of time.
Homes in Millcroft are selling well
The hotspots in Burlington continue to be the Orchard and Millcroft, with most southeast communities either exceeding increases or not far behind. We believe the southeast is experiencing a renaissance due to three factors: ¬ affordability, proximity to Toronto (traffic patterns) and schools (Pinedale and Tuck both scoring very high on the Fraser Report).
We are expecting prices to hold steady in Millcroft and the Orchard with modest increases in 2015 but that will depend entirely on supply. If inventory levels remain low, prices may continue to rise in the double digits.
The Plains Rd neighbourhood has seen a significant increase due almost entirely to the resale of recently built townhomes. Finally, the Palmer neighbourhood has seen some significant gains. This community has proven to be a very good investment area for renovators as the property values have been kept fairly low.
We expect that in 2015 this community will continue to see some very strong gains. Overall, we expect to see a more balanced market in Burlington by the middle of 2015.
The banks continue to make it easier to finance the purchase of a home. The Bank of Canada cut its target for the overnight lending rate last week from the already low 1% down to 0.75%. Royal Bank of Canada was the first to announce yesterday that they would be cutting their prime lending rates by 0.15% down to 2.85% effective today. This announcement prompted Toronto-Dominion Bank, Bank of Montreal, National Bank of Canada, Canadian Imperial Bank of Commerce and Bank of Nova Scotia to quickly lower their offerings as well.
This drop in rates has come at the perfect time for potential home buyers and sellers at the start of the Spring Market.
