The Hamilton-Burlington real estate market has been attracting buyers with more than just its homes. The region offers enviable attractions such as the Royal Botanical Gardens and the Art Gallery of Burlington, incredible restaurants, scenic views, beaches and sprawling conservation areas. History enthusiasts appreciate Burlington’s rich narrative, with sites such as the Ireland House at Oakridge Farm, Freeman Station and Spruce Lane Farm.
Then there’s the Hamilton-Burlington real estate market itself, which has become a focus for homebuyers seeking to escape the urban confines of downtown Toronto in search of bigger homes, yards with swimming pools, and room to breathe.
Comparing Sales in the Hamilton-Burlington Real Estate Market
Based on statistics from the REALTORS® Association of Hamilton-Burlington (RAHB) in the fourth quarter of 2020, residential sales in the Hamilton-Burlington area were almost 25% higher year-over-year. This number comes as no surprise to anyone who has followed the ascent of this sizzling-hot market over the past year. The average price for a residential property in the local Hamilton-Burlington real estate market currently sits at a jaw-dropping $787,840, up almost 8% from last month.
When 2020’s fourth quarter concluded, single-detached homes remained on the market for a median of 10 days, with 0.7 months of inventory, compared to the end of 2019 when average days on market were 22 days, and inventory levels sat at 2.4 months. Hopeful homebuyers are snatching up all inventory at an astounding pace, leading to tightening conditions in this seller’s market.
RABH President Donna Bacher commented on these low inventory levels in the latest Market Update: “This year’s decline in new listings builds off the back of the pre-pandemic drop in new listings and inventory levels we experienced in January 2020. In addition, now many homeowners may not be interested in or even able to move their households due to the pandemic, adding to our inventory woes… The decrease in single-family homes available for purchase, coupled with the logistical hurdles families face moving during a pandemic, may have greatly influenced many not to put their home on the market.”
Other segments of the Hamilton-Burlington real estate market continue to fare well, though less dramatic than the detached market. January’s average prices for a townhome and apartment-style condo increased by 28.8% and 64.7%, respectively, yet prices remain extremely attractive to homebuyers who are being priced out of the GTA.
Attractive Employment Opportunities Within the Hamilton-Burlington Market
For anyone concerned about the job market, it’s notable that unemployment rates are on the decline, particularly within this local market. RAHB reports that unemployment is currently 1.2% less than December 2020, and January 2021 alone has produced an additional 1,600 employment opportunities within the region, helping make the dream of homeownership in Hamilton-Burlington an attainable one.
Producing over 60% of Canada’s steel and employing an estimated 5,000 people, those who work for ArcelorMittal Dofasco are in search of residential properties for sale, and Hamilton-Burlington won’t disappoint.
Job opportunities, real estate for every budget, and top-notch schools only add to the appeal of Hamilton-Burlington. Further, the area strikes that critical balance that homeowners today are yearning for: the amenities of a city, with easy access to abundant green spaces and natural tranquility.
The Year Ahead
But what does this mean for prospective homebuyers hoping to plant roots in the Hamilton-Burlington real estate market? With interest rates at an all-time low and the Bank of Canada vowing to keep rates low through 2023, Hamilton-Burlington should continue to be a place of economic growth and real estate opportunities, albeit competitive ones.
If market trends continue, the projected analysis based on RE/MAX’s Hamilton Burlington Housing Market Outlook, is for a 7% increase in average price driven by move-up buyers from the Greater Toronto Area, as well as first-time buyers snatching up the relatively affordable townhome and condo properties within the region.
What Does This Mean for Hamilton-Burlington Homebuyers?
Employment opportunities, economic advancement, and affordable interest rates are going to be a driving factor for Hamilton-Burlington real estate. Buyers will find themselves competing for homes in this area. High demand and low inventory is expected to continue putting upward pressure on prices, with homes selling quickly. Prospective buyers will need to remain patient as multiple offers may come into play, but the end result for persistent home-hunters will be ownership in one of Ontario’s most sought-after destinations for residential real estate!
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
