April marked the end of the constant month-over-month increase of property costs in Hamilton’s real estate market. After hitting a record high in March, property costs dipped downwards for April with the average property prices dropping from $804K (March) to $786K. Most real estate agents in Hamilton expected this seasonal decline which points to the continued strength of the region’s real estate market. Here are the reasons you should invest in Hamilton’s housing market.
1. Real estate market stability and growth
Hamilton’s real estate market continues to demonstrate a propensity towards growth. Following back-to-back record-breaking months, the city’s housing market shows no signs of letting up. It has shed its boring label ‘steel town’ to become one of the most vibrant and diversified cities in Ontario. The growth from tourism, restaurants, development projects and local businesses has helped set Hamilton real estate industry in a stable growth trajectory.
Both residential and commercial properties are leaving the market at a record-high pace, while inventory listed in various property listings continues to decline. Transaction volume also dropped from 1302 (recorded in March) to 1195. Investment analysts and real estate agents in Hamilton believe that the stability of the city’s housing market has made Hamilton the hottest growing property market to invest in Ontario.
2. Better property prices
From the year-over-year perspective, property costs in Hamilton have performed incredibly well. The average sold prices for nearly all property types increased by 42 percent compared to April 2020. Note that detached houses fueled a larger percentage of this appreciation with their prices increasing by 43 percent year over year to about $857K. On the other hand, the cost of condos and semi-detached apartments followed closely with 28 percent and 35 percent year over year increase to $466,264 and $679,626 respectively.
It is important to mention that property costs in Hamilton are affordable. For instance, the average sold price in Hamilton City Center is $576K. But Hamilton East’s average property prices are slightly expensive ($617K). These prices are more affordable compared to the average sold prices of houses in Toronto which are over $1 million.
This difference in property prices is likely to remain because Toronto benefits a lot from a growing technology sector and an expanded CMHC First-Time Homebuyer Program. According to most real estate agents in Hamilton, the city’s property market is more investor-friendly compared to Toronto in terms of property prices.
3. Limited supply of homes
One of the main reasons real estate investors and real estate agents in Hamilton are very confident in Hamilton City’s strength is due to a provincial issue that’s common across the country – builders cannot build new houses fast enough. Even before the coronavirus pandemic, the construction industry was behind in its quest to meet the growing demand for homes. In July 2020, construction crews in the province worked on numerous new housing units. Most of these new housing units were multi-unit buildings and apartments.
The point is; residential dwellings such as single-family houses are a hot real estate commodity. Be sure to consult with an experienced real estate broker or analyst if you plan to buy or sell residential or commercial property in Hamilton. If you plan to invest in Hamilton’s housing markets, consult with one of the best real estate agents in Hamilton.