Housing prices expected to keep climbing in Hamilton in 2020: report
The price of homes in Hamilton is expected to keep on its upward trajectory in 2020.
According to the RE/MAX Canadian housing market outlook for 2020, housing prices in the Hamilton-Burlington area can see increases upwards of 3.8 per cent.
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains," says Christopher Alexander, executive vice-president and regional director, RE/MAX of Ontario-Atlantic Canada.
"Thanks to the region's resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic."
The Hamilton-Burlington housing market will favour sellers in 2020, with an average residential sale price increase of 3.8 per cent anticipated for the region next year, in line with historical price appreciation, according to RE/MAX.
The report indicates that Hamilton is currently experiencing a seller's market, with 1.9 months of inventory in Hamilton. Buyers have adjusted to the mortgage stress test and have found other ways to finance home purchases, such as through private lenders as opposed to banks.
“The industrial sector in Hamilton has picked back up and the economy is expected to be impacted positively in the coming year," according to RE/MAX. "Move-over buyers from the GTA who are looking for more space are driving the market.”
The report suggests that increased GO Train service and higher levels of affordability in the region compared to the GTA are the most influential factors that will impact the city's housing market in 2020.
In fact, a CMHC report issued last week pointed out that even before the West Harbour and Confederation Stations were completed, Hamilton saw the price of homes increased by up to $40,000 on the news of the developments.
Move-over buyers — who are buyers that move from more expensive areas to get more 'bang for their buck' in more affordable regions — are expected to drive demand in 2020, in particular, moving from the GTA in search of more affordable properties.
The hottest neighbourhoods in Hamilton for 2020 include Leckie Park, Waterdown West, and Fifty Point.
From a national perspective, RE/MAX anticipates a levelling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the 2020 Housing Market Outlook Report.
Other findings in the report show that most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019.
However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).