Hamilton Housing Prices are on the Rise
Situated within commuting distance of Toronto, the GTA, Kitchener-Waterloo and Niagara, Hamilton is a popular landing spot for newcomers to Canada hoping to buy a home.
According to the city of Hamilton website, "one in four people in Hamilton was born outside of Canada, and 3,000 to 4,000 immigrants arrive in Hamilton every year. Hamilton is also home to about 5,000 international students."
Located just 75 kilometres from Toronto, this medium-sized city features lower housing (and rental prices) than most of the GTA. In fact, housing sales in November were off 10 percent month-over-month and down three percent year-over-year.
Lack of inventory is a serious problem
But that doesn't paint Hamilton's complete housing picture.
November's housing data shows that the average price of a Hamilton home has risen 28 percent year-over-year to just over $835,000. It's also up eight percent month over month.
The reason: lack of inventory and high demand.
Donna Bacher, president of the local Realtors Association of Hamilton-Burlington (RAHB), said that the latest housing data shows that despite current home listings and sales being higher than the 10-year average, the November inventory numbers for the Hamilton area in November remained low.
Total sales were off 10 percent
The city of Hamilton, located in the densely populated region at the west end of Lake Ontario, includes former communities of Ancaster, Dundas, Flamborough, Glanbrook, and Stoney Creek. The southern part of the city includes the Niagara Escarpment, which locals call “the mountain.”
"We have also never seen inventory this low as the level of active listings and months of inventory available continue to fall. We expect the same story in December which typically sees lower activity levels in general - Donna Bacher
Total sales were off month over month by about 10 percent and off three percent year-over-year said Bacher. Listings across Hamilton were down, emphasizing the continuing homes-for-sale supply issue
"Our inventory numbers are…they’re in the basement,” she recently told Hamilton radio station 900 CHML. “So our housing reserves are extremely low.”
Commonly referred to as “The Hammer”, the city was named after George Hamilton who created the town in 1815. The city, also known as "Steeltown," quickly became a vital port and railway centre. The Hamilton region has grown into one of Canada’s top industrial sectors and commuter cities.
"We have also never seen inventory this low as the level of active listings and months of inventory available continue to fall," said Bacher. "We expect the same story in December which typically sees lower activity levels in general.”
Sales activity in Hamilton fell three percent
Statistics show that a detached home in Hamilton was worth about 27 percent more at an average of $916,000 this past November compared to the $720,581 average price from November 2020.
By comparison, the average Toronto home price rose to $1,163,323 for November 2021, a small 0.7 percent month-over-month increase from the October average price of $1,155,345. One year ago, in November 2020, the average Toronto home price was $955,615. That means the current average home price in Toronto rose 21.7 percent year-over-year by November 2021.
Sales activity in Hamilton continues to fall
The same MLS data for November also shows that sales for apartment-style residences in Hamilton were approximately 35 percent higher year over year to $495,000, compared to the November 2020 average of $366,000.
New listings fell five percent since last November. Sales activity in Hamilton fell three percent year over year.
The highest average housing price for the area was found in Ancaster at $1,219,930. That represents a 34 percent hike year-over-year.
Hamilton centre recorded the lowest average home sale price ($625,038) at the end of November. That's risen 22 percent year-over-year.
Rent prices fell from October to November
The city remains a good place to rent within southern Ontario. According to the most recent rental report from Rentals.ca, a one-bedroom in Hamilton in November costs $1,482 per month. That's down 4.94 percent from October. Year over year, the rent price for a one-bedroom in this city of 536,920 located at the western end of Lake Ontario is up 2.35 percent
Now, compare that to rents for November in Toronto, just 75 kilometres away down the Queen Elizabeth Highway. The average price for a one-bedroom in Toronto was $2040! That's up 1.69 percent from October 2021 and up 7.99 year-over-year.
Meanwhile, in nearby Burlington, the average home price rose 28 percent to $1,175,264 (compared with last year in November).
Niagara North’s average price year over year was up 25 percent to $913,967. Haldimand County was up about 50 percent to $869,898 in 2021 from $580,908 in October 2020.
For the entire RAHB market area, the average sale price of a detached property for November was $911,673, up 27 percent from last year.
The Realtors Association of Hamilton-Burlington (RAHB) has reported 1,199 sales of residential properties within the market area in November 2021.
Meanwhile, Re/max, one of Canada’s largest estate brokerages is forecasting huge increases in housing prices across the country in 2022 with some markets rising up to 20 percent over the next 12 months.
The recent Re/max report predicts a 16 percent increase in Hamilton housing prices, with the cost of a home rising to $909, 503.
