Hamilton’s real estate market continues its record-setting pace since early 2020. After a massive drop in sales that accompanied the first COVID-19 lockdowns, markets across Ontario, and Canada, have been red-hot, breaking previous records for the number of homes sold and the average prices for those homes. The freedom to relocate due to working from home, historically low interest rates and extra disposable income no longer used for commuting and vacations are some of the contributing factors.
But while home sales have slowed, prices continue to soar thanks to an ever-increasing demand that is far outpacing a dwindling housing supply. Average home prices in Hamilton cracked the $1 million mark for the first time in February 2022. And despite planned interest rate hikes adding to expenses like hiring a Hamilton real estate lawyer, land transfer tax, moving costs, etc., house prices are expected to continue rising because there will still be too much demand.
A Closer Look at the Numbers
The average home price in Hamilton was actually $1,013,485, breaking the previous all-time record with a year-over-year increase of 32%above February 2021’s average home price of $769,774. This calculates to a one-year increase of $243,711. It also represents a one-month increase of 4% as Hamilton’s average home price in Jan 2022 was $976,432.
The surrounding area also saw massive year-over-year increases in average home prices:
- Burlington was up to $1,413,836, a 33% increase.
- Prices in Haldimand County rose by 44.5% to $913,550.
- The average price in Niagara North was up by 54%to $1,144,225.
Breaking down the numbers by property type reveals that:
- The average sold price of a detached home in Hamilton rose by 34.5% year-over-year to $1,134,153. Detached homes spent an average of 9 days on market before selling.
- Townhouses and semi-detached homes sold for an average of $895,959, a year-over-year increase of 31%. They were also the fastest-selling of all home types with the lowest average days on market of 8 days. This happened as new listings of semi-detached homes and townhouses were down 7% year-over-year, further proof of their popularity as an affordable alternative to a detached home.
- Hamilton condo apartment prices increased by 38% year-over-year. They sold for an average of $606,728and were on the market for an average of12 days.
Plans For Increasing Housing Supply
The Ontario government recently released a report authored by its Housing Affordability Task Force aimed at building 1.5 million new homes over the next ten years. Some of its recommendations include:
- Increasing density in neighbourhoods zoned exclusively for single-family homes.
- Setting uniform provincial standards for urban design.
- Regulating timelines for approving developments with automatic approvals if the municipality misses the deadline.
The Federal government also recently pledged $26.7 million in funding to build close to 109 affordable housing units in Hamilton.
-
-
-
-
