Many experts predicted that the 2016 Hamilton real estate market would cool off slightly compared to last year's record breaking results, which took everyone by surprise. However to date it looks like the market is continuing to produce strong numbers as Hamilton remains the only real estate market in Ontario where demand is outpacing supply.
The Canadian Mortgage and Housing Corporation (CMHC) just released its January 2016 data and to the surprise of many, Hamilton showed a 7.3 per cent increase in total number of sales and an 8 per cent increase in average prices for the month of January.
Mark McNeil, a reporter with the Hamilton Spectator believes that Toronto buyers are helping to fuel the hot Hamilton market. McNeil spoke with James Schwartz, a technology company owner, who recently bought a condo for $268, 000 in the Catharine and King William area of downtown Hamilton. "A condo like that in Toronto would have cost $650, 000," Schwartz told McNeil. "In my opinion downtown Hamilton is gentrifying. There are lots of hipsters and all kinds of people from Toronto moving to Hamilton because it is more affordable."
Richard Harris, a geography professor at McMaster University agrees, telling the CBC that "the big news that everyone's talking about is [Hamilton's] gentrification." Gentrification, which refers to the renewal and rebuilding of an area with the influx of middle-class or affluent people, often displaces current residents who are usually low to middle income earners. The increased interest in Hamilton real estate and resulting gentrification has raised concerns that middle and lower income renters throughout the city will be pushed out as building owners convert their apartments to condos.
Although many Hamilton renters jumped into home ownership last year, which resulted in an increase in the percentage of apartment units available in the city, rents increased by 3.08 per cent to $1,034 per month, CBC News reported. This increase in rent is due in part to building owners improving their properties and passing some of the associated costs along to their tenants. While some buildings are remaining as rental units many are being converted to condos as the demand for affordable home ownership across the city increases.
With the demand for real estate on the rise Hamilton residents will be interested to know that there are a number of ongoing condo projects within the city that are slated to finish in 2016, 2017 and 2018. These include projects on James Street North, 150 Main Street, King Street East, Wilson Street, Charlton Street East and James Street South.
The price of Hamilton condos increased last year, up 14 per cent with the median price of a condominium in the city costing $301,250. Although higher than previous years, Hamilton condos remain much more affordable than a house in the city. According to the CMHC, in January 2016 the average house in the Hamilton area sold for $451, 130. For Hamilton buyers wanting to get into the market for less than $350, 000 a condo may be the best option.
Copyright Larry Szpirglas 2016
The Canadian Mortgage and Housing Corporation (CMHC) just released its January 2016 data and to the surprise of many, Hamilton showed a 7.3 per cent increase in total number of sales and an 8 per cent increase in average prices for the month of January.
Mark McNeil, a reporter with the Hamilton Spectator believes that Toronto buyers are helping to fuel the hot Hamilton market. McNeil spoke with James Schwartz, a technology company owner, who recently bought a condo for $268, 000 in the Catharine and King William area of downtown Hamilton. "A condo like that in Toronto would have cost $650, 000," Schwartz told McNeil. "In my opinion downtown Hamilton is gentrifying. There are lots of hipsters and all kinds of people from Toronto moving to Hamilton because it is more affordable."
Richard Harris, a geography professor at McMaster University agrees, telling the CBC that "the big news that everyone's talking about is [Hamilton's] gentrification." Gentrification, which refers to the renewal and rebuilding of an area with the influx of middle-class or affluent people, often displaces current residents who are usually low to middle income earners. The increased interest in Hamilton real estate and resulting gentrification has raised concerns that middle and lower income renters throughout the city will be pushed out as building owners convert their apartments to condos.
Although many Hamilton renters jumped into home ownership last year, which resulted in an increase in the percentage of apartment units available in the city, rents increased by 3.08 per cent to $1,034 per month, CBC News reported. This increase in rent is due in part to building owners improving their properties and passing some of the associated costs along to their tenants. While some buildings are remaining as rental units many are being converted to condos as the demand for affordable home ownership across the city increases.
With the demand for real estate on the rise Hamilton residents will be interested to know that there are a number of ongoing condo projects within the city that are slated to finish in 2016, 2017 and 2018. These include projects on James Street North, 150 Main Street, King Street East, Wilson Street, Charlton Street East and James Street South.
The price of Hamilton condos increased last year, up 14 per cent with the median price of a condominium in the city costing $301,250. Although higher than previous years, Hamilton condos remain much more affordable than a house in the city. According to the CMHC, in January 2016 the average house in the Hamilton area sold for $451, 130. For Hamilton buyers wanting to get into the market for less than $350, 000 a condo may be the best option.
Copyright Larry Szpirglas 2016
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