Needless to say, buying a home in the big city just isn’t feasible for everyone. With the trends we’ve been seeing in the GTA and surrounding markets over the last 5-10 years, it’s incredible that anyone is still buying GTA property; price points are at an all-time high, and the increased average home cost has expanded at a rate far greater than that of inflation. As a result, Canada has just launched new mortgage rules meant to help even out the market. With that said, it’s yet to be seen how much effect these new mortgage rules will have in Ontario markets. Some markets will undoubtedly be less affected than others; the two big real estate hubs in Canada are Toronto and Vancouver. It’s these two markets that will be affected the most, as the inventory in the lower price range is all but non-existent, and the new rules will essentially limit the amount of property many buyers will be able to purchase. Some of the surrounding markets, however, will likely not see as much of an effect on yearly sales. This is where Hamilton comes into play.
There has been a shift in the Hamilton real estate market over the last few years. Hamilton has traditionally been a lower priced market in comparison to some of the surrounding cities, but that is starting to change. As a result of the upwards trend, more and more investors have been starting to see the value of real estate in the city, causing the competition to heat up. But the nice part is, despite the average home price increasing over the years, it has yet to reach the average sale price that we’ve been seeing closer to Toronto. In fact, it’s not even close. In October of 2016, the average Toronto home was priced at $762,975 for all homes in the city. The average detached property is going for a whopping $1.3 million. In comparison, the average home price in Hamilton for the month of October, including all properties, was $509,459. But it doesn’t stop there; the bigger stat to consider here is the increase over last year’s October numbers: The average price of freehold properties in Hamilton showed an increase of 15.4 percent when compared to October of last year; the average sales price in the condominium market has increased by 19.1 percent when compared to the same time period. What’s more is that the average number of days on the market has decreased from 35 to 22 days in the freehold market and from 35-24 days in the condominium market, compared to October of last year. These numbers were reported directly from the REALTORS Association of Hamilton-Burlington (RAHB).
So the upwards trends are very promising. But why will Hamilton be minimally affected by the new mortgage rules? It will be less affected because these rules aren’t meant to have an impact on the markets that haven’t seen an increase in price point exceeding the rate of inflation. These rules are meant to calm the major markets like Vancouver and Toronto, whereas some of the surrounding markets don’t have as much inventory in the high price points, and therefor will not be as affected. So as it stands, Hamilton still has room to grow, and it’s likely that we will continue to see an upwards trajectory until the larger markets start to even out. Those who own property in Hamilton will likely continue to watch their equity increase for the time being, making now a great time to buy. As logic would tell us, you don’t want to buy when the market has reached its peak. In the city and its immediate surrounding marketing, it would seem as though we may be at the peak. For Hamilton, trends show otherwise.
But moving to Hamilton is about so much more than just the real estate. The city has been nick-named by some as the “Brooklyn of Real Estate” as it’s viewed as an up and coming city. With a wealth of Hamilton Hot Spots, the city is an incredible place to live whether you’re starting a family, or enjoying a single life. Known for its thriving art scene, and surrounded by natural beauty, Hamilton is an eccentric and beautiful place to live. Close to the big city, as well as the Canada/US border, with a University town next door and a booming working force, Hamilton has a lot to offer. You’ll quickly become acquainted with the regular weekly festivities like Fish Fry Fridays taking place this Friday and every Friday for the foreseeable future. Shrek the Musical is also being offered this coming Friday, along with a holiday craft fair the following Saturday. This is just a taste of what this wonderful city has to offer.
If you have interest in purchasing property in Hamilton, give me a call. I’d love to help!
As always, thanks for reading!
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