Sunday, March 5, 2017

Hamilton Real Estate Prices Up 27.5% Year on Year in February 2017, Hamilton Centre 31.6%

The Real Estate Association of Hamilton-Burlington is reporting that in February:

Seasonally adjusted* sales of residential properties were 18.1 per cent higher than the same month last year, with the average sale price up 27.5 per cent for the month. Seasonally adjusted numbers of new listings were 2.5 per cent higher than February of 2016.

Residential sales prices going up 27.5% year on year is pretty nuts, although with Toronto prices, a hot spring was expected. Those numbers include more than just Hamilton, for Hamilton alone, the average sale price was up 27.1%. Burlington was up slightly higher at 27.6%. Hamilton freehold prices were up 27.0% versus 26.8% for condominiums, whereas for Burlington freehold prices were up a massive 34.6% versus only 15.7% for condominiums.

Some of the individual area increases in Hamilton were interesting. Mountain properties were up 29.4%. Hamilton Centre properties were up 31.6%. Dundas was only up 12%, but that was only on 39 sales. Hamilton West prices were up 24.4%.

Burlington freehold average price was almost a million dollars, up to $957,120, so Hamilton prices, especially in the lower city are a bargain by comparison. The spring should continue to be hot, however the anticipated rise in the US fed rate by a quarter of a percent (and another potential rate rise in 2017) which indirectly affects Canadian mortgage interest rates could cool things down.

This is fundamentally changing Hamilton. Rent will likely increase due to those who just can't afford to buy a house. Derelict properties will be renovated, although that has already been happening for a while.

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