2013 Marks the Start of a Long-Term Expansion for Hamilton, Ontario
As media experts continue to make bold predictions for the seemingly dark future of the Canadian real estate market, data-focused investors can take solace in the fact that there are many lucrative options outside of the media microscope. The statistics show that 2013 will be slow, steady growth year for many of Canada’s previously top performing housing markets. Larger cities in particular, such as Toronto, Vancouver and Montreal, remain static as the pace of buying slows. Outside these major markets however, a trend is emerging that is seeing Canadians eschew life in the big bustling cities for a property in one of the smaller growing metropolitan areas, such as Calgary and Hamilton. And many are now finding that local high value opportunities remain available to those with a long-term growth focus.
Hamilton is one of 2013’s leading growth markets and market conditions are primed for the city to take a lead role throughout the year and in the long-term. This is a trend that has been well documented since 2012, when housing prices increased by over 5.5% in the second half of the year alone. And many stakeholders are excited about the potential for Hamilton’s market in 2013 and beyond. HHHBA’s (Hamilton-Halton Home Builder’s Association) Executive Offer, Mathieu Langelier made the following comment on the positive signs in the Hamilton market within the HHHBA’s March update:
“This is good news for our industry and it just goes to reinforce what we have been saying for months: the Hamilton market is a very safe market to invest in. Our price point is still largely below the GTA average and that attracts buyers to our city.”
Mathieu Langelier, HHHBA Executive Officer
It’s this type of positive data track that made Hamilton one of REIN’s leading cities to invest within in 2012. And it seems many residents of major cities across Canada are also getting the news that market experts have been telling their business associates about over the dinner table– Hamilton is a city that is on the move forward. Between 2006 and 2011, 15,000 people moved from Toronto to Hamilton to avoid what was then simply a slowly increasing cost of living in the big city. Now, the average price of a home in Hamilton is $140,000 less than in Toronto for a comparatively sized property.
And the costs of Toronto-style living are growing. This will inevitably ensure that families and savvy, future-focused individuals make the move west from Toronto. Growth-planning companies too are capitalizing on Hamilton’s affordability – media companies in particular. CBC recently opened up an online news outlet on James Street North and there have been four animation studios to open their doors in city in the last 12 months. Hamilton allows these companies to be movers and shakers; to lead their industry by consolidating their spending on real estate costs and allocating resources to other industry opportunities.
Buyers and investors too are now slowing coming around to the idea that the Hamilton area market is in an exceptional growth phase. And with the spring real estate season now beginning and interest rates remaining at an all-time low, despite government intervention, there could never be a better time to enter into the city’s real estate investment marketplace.
However, Mathieu Langelier offers a note of caution within the latest HHHBA update, explaining that while the city of Hamilton remains largely an affordable prospect for investors at present, the city is growing in status rapidly. Speaking on Hamilton’s rising property values, he made the following comment:
“As a city, we must control escalating costs due to land shortage and government imposed fees. If we can meet this objective together we see a great forecast for the city of Hamilton for years to come.”
Mathieu Langelier, HHHBA Executive Officer
With international pundits, national investment specialists and local leaders alike all assailing the advantages of an investment in Hamilton’s bright future, and the QEW jammed with families making the move from Toronto, it’s becoming difficult for many to ignore Hamilton’s rise. For those looking to capitalize on the city’s upward momentum and limitless potential, the real estate market has never been more lucrative and secure.