Real estate in Hamilton in 2015 was at an all time high, with “a record-breaking number of properties – about 16, 000 – sold,” CBC News reported. Looking to 2016 experts like Abdul Kargbo, who is an analyst with the Canadian Mortgage and Housing Corporation, predicted that in Hamilton “the market will remain strong, but it’s all relative… 2016 and 2017 will be a little slower than 2015,” he said.
Despite predictions, 2016 data shows an increase in average housing sales and prices
The small dip in demand that experts were planning for in 2016 hasn’t happened yet. Despite predictions that the 2016 Hamilton real estate market would cool off slightly the city remains the only one in Ontario where demand is outpacing supply. The CMHC just released complete January data on Hamilton’s current real estate environment and in fact, compared to January 2015 the market showed a 7.3 per cent increase in total number of sales and an 8 per cent increase in average prices.
Competition to Buy Fierce with Fewer New Listings
With fewer new listings available this year compared to last (there were 1, 111 new real estate listings in January 2016 compared to 1,328 new listings in January 2015) it looks like competition to buy a home in Hamilton has been fierce in the first quarter of the year. Fewer listings and high demand has created an environment of multiple offers and bidding wars – a dream for Hamilton home owners who want to sell.
The interest in Hamilton real estate comes from within the city as low interest rates are turning long-time renters into first time home buyers. Rents in Hamilton actually increased by 3.08 per cent to $1, 034 per month last year, CBC News reported. With rent increasing throughout the city the gap between the cost to rent and own a home is closing. Many renters are now wondering why they should continue to rent when they could build equity in their own home instead.
Interest outside of the city is also fueling the buying frenzy in Hamilton as Toronto buyers look to Hamilton for the space and affordability they can’t find in the GTA. The high demand for homes is pushing housing prices up, with increases similar to those projected for Toronto and Vancouver, which are two of the hottest housing markets in Canada.
Time will tell if the real estate market will continue to hold strong or start to cool off as experts predict. In the meantime if you’re thinking of buying or selling in Hamilton then you’ll be interested to know that according to the CMHC, in January 2016 the average home in the Hamilton area sold for $451, 130.
Mark Maga Real Estate 2016