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Hamilton’s spring real estate market warms up with return of competition and ‘optimism’ among buyers

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2 years ago

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The birds are chirping, trees are budding and bidding wars are returning as Hamilton’s spring real estate market starts to warm up.

But some Hamilton realtors say it’s more than just the seasonal thaw at play.

Last year marked a tumultuous time for the city’s housing market, with the average price of a home in the city soaring to $1,104,163 in February — but falling to $955,658 by the end of the year.

The cooling of the market came as the Bank of Canada raised interest rates eight times between March 2022 and January 2023. However, rates held steady in March and another announcement is set for April 12.

Hamilton real estate agent Michael St. Jean told The Spectator that change in tune has caused some of the “worst-case scenario” fears on interest rates to start tapering off, instilling buyers with a renewed sense of confidence.

“We’ve had a real uptick in activity,” said St. Jean. “It may not be showing up in the March numbers, but it’s happening on the ground.”

Hamilton real estate agent Michael St. Jean is pictured in this file photo.

The Realtors Association of Hamilton-Burlington (RAHB) reported that last month was the slowest March in terms of sales in a decade, with transactions down by nearly 44 per cent from the same time last year.

However, compared to this past January, which was the slowest start to the year since 2011, the number of sales has climbed by more than 56 per cent.

 

St. Jean said on the ground, that activity has translated to homes spending fewer days on the market, the number of homes hitting the market increasing and demand among buyers coming back.

In January, a detached home in the city was sitting on the market for 37 days, but as of March, that number had fallen to around 28, according to monthly RAHB data. While there were just 666 new listings in January, there were close to 930 in March.

St. Jean noted more listings are selling the same day they go on the market, multiple offers have returned for a “decent amount” of listings and in some cases, his buyers are squaring off against a dozen others — and losing.

Hamilton real estate agent Sarit Zalter told The Spectator instances of multiple offers “completely disappeared” last fall, even if a home was considered to be the “best of the best,” as the market went cold under rising interest rates.

Hamilton real estate agent Sarit Zalter.

Hamilton real estate agent Sarit Zalter.Supplied

And in particular, those situations are playing out “more and more” for homes listed in the lower price brackets, said St. Jean.

Data from RAHB shows that more than 200 of the homes that sold in the city went for between $600,000 and $799,999 last month, while fewer than 100 homes sold in the $1,000,000 and $1,499,999 bracket.

St. Jean said the jump in demand is a result of higher interest rates, which have eaten away at whatever budgets buyers would have had a year ago.

“It’s pushed everybody down,” he said. “That price point has become a hot commodity and you have even more competition down there than ever before.”

Meanwhile, inventory levels in the city remain “on the low end” when compared to the pre-pandemic market, said Zalter.

Data from RAHB shows there were 1,019 homes on the market last month, while back in March 2019, there were 1,383 homes on the market. However, inventory levels have improved compared to March 2022, when there were just 674 homes on the market.

When it comes to new listings, 928 homes hit the market last month, while in March 2019, more than 1,100 properties had a sale sign stuck in their yard, according to RAHB.

St. Jean noted that the splash of homes some thought may come to market due to high mortgage rates “scaring homeowners into selling” has not come to fruition.

 

Another factor affecting inventory is homeowners locked into low mortgage rates, added St. Jean. Those folks, even if they want to move, aren’t budging as they’d likely have to “pay more to get less,” he said.

On buyers in the market, Zalter noted those making lateral moves have gone away, while those looking to downsize or upsize have come back to the market “with optimism.”

“Those sales are happening again,” she said. “But we’re not hearing from people who don’t need to move.”

And with no change in the housing situation in the region, which already lacks supply amid increasing immigration levels, St. Jean predicts the local market will likely turn into “a pretty hectic environment” once again.

“It is inevitable, whether it’s starting now or sometime in the near future,” he said. “Only time will tell.”

RAHB president Lou Piriano told The Spectator that folks who are thinking about buying a home should expect higher prices, adding that the market “bottomed out” in January and has been springing back ever since.

In January, the average price of a home in Hamilton was $750,529. As of March, it had risen to $793,241, according to RAHB data.

 

“People should find a way to buy now and finance later,” said Piriano. “Prices are on their way up.”

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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1 week ago

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November 6, 2024

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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3 weeks ago

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October 24, 2024

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

The Canadian Press. All rights reserved.

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Here are some facts about British Columbia’s housing market

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4 weeks ago

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October 17, 2024

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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