Hamilton – The Hot Commodity
It’s all over the media… Hamilton, Ontario is the new it city & homes are selling for many thousands over asking with multiple offers.
We’re going to take a look at why Hamilton’s Spring market took off with such ferocity & if this is a sustainable reality or a real estate bubble.
Many factors have aligned to create this explosive market & it is a wonderful awakening for Hamiltonians! This is a city with so much to offer but has had a difficult time reinventing itself from the “ steel town ” image that has been the focal point for decades.
What makes Hamilton, Ontario great?
- Affordable housing
- Sense of community – many diverse communities offer something for everyone
- The City of Waterfalls – more than 100 waterfalls identified by Hamilton Conservation Authority
- Museums for all ages & interests
- Performing Arts facilities (amateur & professional)
- A rich artistic community & the Art Gallery of Hamilton
- Festivals & Fairs
- Year round farmers market
- 49 km of city owned trails
- Thousands of acres in protected green space & parks
- Unique shopping experiences
- Canadian Football League – Hamilton Tiger Cats
- Ontario Hockey League – Hamilton Bulldogs
- Vast system of Public Transit
- GO Train Access via two new train stations (Hamilton & West Harbour)
With so much to offer, the new GO Train stations are drawing in a new crowd of people looking for affordable home ownership while offering ease of access to commuters. Hamilton is the answer for people who want a lifestyle of diversity without leaving them house poor.
What are the contributing factors?
- Low interest rates
- More buyers looking than homes for sale
- Limited affordability in surrounding markets
- REALTORS® bringing clients from more expensive markets who are placing higher bids
When a 350 sq.ft. condominium in Toronto is selling for $400,000+ and a detached 3 bedroom home with a yard is selling for $300,000 in Hamilton, it’s no wonder people are being drawn west. Couple that with favourable financing options & you have a recipe for a strong market. Now factor in the low inventory of homes for sale & you end up with buyers competing for the same home which drives up the price.
Is this a real estate bubble?
The short answer is no. This is a result of many factors working together to drive the value up. As our neighbouring markets continue to climb in cost, so will Hamilton. If you are in a position to enter the market as a first time buyer or investor, the future is looking very favourable & it would be worthwhile to investigate your options.
If you are looking at your next purchase as a 5 year plan we suggest you wait for the market to stabilize a bit before you buy. Competing & paying top dollar for a home today is mitigated if you plan on holding the investment for 10 or more years. Anything less & you risk limiting the equity built before you take the next step in your real estate adventure.
Are there any disadvantages to buying in Hamilton?
Even with all of the wonderful reasons to buy in Hamilton, you should always weigh them against any negatives.
- As with any city there will always be pockets that will take longer to grow your equity – Using a REALTOR® who knows the city will be invaluable when choosing a neighbourhood to suit your needs.
- Hamilton is a large city created by the amalgamation of surrounding towns & communities. This has led to higher taxes & many residents feel it has put stress on the essential services & amenities.
- Although plans are in place to alleviate the high levels of pollution in Hamilton Harbour/Burlington Bay, the fact remains that it is one of the worst water pollution sites in Canada.
Hamilton is a city of growth right now — it’s identity shift has been years in the making & is coming to fruition. People are taking notice & the city is truly entering a coming of age.
If you would like more information about Hamilton or to talk more about your options, reach out to us… we love to help!
Keeping it genuine,
The Edwards Team
The Genuine Blog
