Hamilton has been steadily gaining popularity among GTA home buyers as it is one of the more affordable options for those looking to purchase a home from out of town. Out-of-town buyers are expected to play a large part in supporting the 2016-2017 housing market, according to the Canada Mortgage and Housing Corporation (CMHC).
“Relative to the GTA, Hamilton is still considered a more affordable housing market and will continue to attract potential homebuyers from the less affordable parts of the GTA,” said Abdul Kargbo, CMHC senior market analyst for Hamilton and Brantford, in a press release. “As home prices continue to rise in the GTA coupled with a gradual increase in mortgage rates, carrying a mortgage will become a greater challenge in 2017.”
At the recently-held Hamilton Housing Outlook Conference held by CMHC, analysts provided an in-depth analysis for the next two years and explained how trends will impact Hamilton’s housing industry.
At the conference, CMHC shared that in Hamilton, average home prices will increase by 3.7 per cent in 2016 and 2.5 per cent in 2017. According to the firm, existing home sales will fall to 14,000 in 2016 and 13,600 in 2017, while total housing starts will be stable at around 2,400 units in both 2016 and 2017. In apartments, the vacancy rate will fall to 2.2 per cent in 2016 and 2.0 per cent in 2017.
“Despite improving economic performance, Ontario housing activity is expected to slow over the forecast period as the cost of owning a home continues to increase,” said Ted Tsiakopoulos, CMHC regional economist, in a press release. “However, some segments of the housing market will do better than others. Homes in south western and southern Ontario markets bordering the GTA tend to be more affordable, thus we expect a lot of activity in those centers as we do for high-density housing which includes less expensive rental accommodation.”