The housing market in the City of Hamilton, also known as the “Steel Capital of Canada,” is approaching vulnerable levels in 2018. This is fueled by price increases, overvaluation of properties, and low housing demand.
Comparing the data from January 2018 and data from the same month last year, house prices increased for residential and residential freehold sectors, with the median sale price for residential units sitting at 8.4% and residential freehold at 9.6%. On the other hand, condominium median sale price decreased by 1.8%.
There is a fluctuating trend for annual housing starts in Hamilton from 2012 until 2016, and even through 2017. The Realtor’s Association of Hamilton-Burlington reported a 4.5% increase in resident listings last December 2017. However, housing starts went down by 9% in January 2018 versus the same month last year. Aside from population and economic growth, another factor that may have contributed to this fluctuation is the low demand as more listings are available due to low sales.
Real estate sales dropped as prices increased. The respective decrease in sales for residential, residential freehold and condominium units are by 30.4%, 30.2%, and 31.2%, respectively. Moreover, a housing unit stays around an average of 43 days before it is completely absorbed, compared to the 28-day absorption rate a year ago.