Hamilton Homebuyers and Businesses Expected to Thrive in 2014
The data continues to roll in on the year ahead for Canada in 2014. And the trending numbers shows that, while nationwide economic challenges are on the horizon, the local Hamilton economy continues as a safe haven for those seeking to avoid the difficult conditions in other markets.
Consider the city’s real estate, for example. As the Hamilton real estate market continues to develop, after highly successful periods in 2012 and 2013, the city’s housing sector is expected to remain a bright spot on the Canadian real estate map. The local area economy is also booming, in a trend that is set to help Hamilton continue its growth across 2014. It’s a trend that is long in the making, as Hamilton, driven by city stakeholders, has become one of the leading lights within the Canadian economy. We’ll take a look at the factors behind the city’s strengthening performance, and how these factors have contributed to the health of Hamilton’s real estate market.
A closer look at the Hamilton real estate market shows that Hamilton is now a city that few can ignore. The city has become a leader within many areas of the Canadian real estate marketplace. For example, in 2013, the Hamilton/Burlington real estate market experienced a 31% increase in luxury homes sales from 2012.This was the fourth largest increase in luxury home sales of any city in Canada for 2013. Buyers with money to spend obviously see the potential within the local real estate marketplace.
Hamilton has also benefited from the recent surge within the Canadian manufacturing sector. Long known as the epicenter for manufacturing in Ontario, the city is expected to achieve a significant boost from the confluence of a lowering Canadian dollar and the improvements within the US economy in recent times.
While the lowering in value of the Canadian dollar has caused some consternation within the Canadian business world, leaders in Hamilton are looking at this as an opportunity to bring in new commercial interests and drive new opportunities for foreign businesses across the city. An example of the commercial activity taking place in Hamilton this year is the building of the new Maple Leaf processing plant and the new Navistar plant, which are expected to drive a healthy jobs market in the region for the next few years. The latest outlook for Hamilton’s manufacturing sector shows that industry output will grow by 3.7 per cent in the city this year.
These are some of the factors behind the Conference Board of Canada projections of a 2.5% growth level for the local Hamilton economy in 2014, This surge in manufacturing in the local region is expected to add to the 7,000 new jobs projected for the local Hamilton economy, thereby improving already solid unemployment figures that fell 1.1% in 2013, and providing the city with a stable economic base moving forward.
“We think the risk is on the upside for Hamilton, which is a good thing. We’ve seen strong U.S. demand but if it accelerates, that will be good news for Hamilton.”
Conference Board of Canada Economist Jane McIntyre
Canadians across the GTA are taking notice of this forward momentum within the Hamilton economy. With housing prices in Toronto rising to achieve continually new record values in recent times, many are looking to Hamilton, a mere 60kms drive away, as a safe haven against challenging housing costs. While highly affordable compared with those in Toronto, the city’s real estate market has maintained strong momentum in recent years, with growth rates of 5.1 per cent and 4 per cent in 2012 and 2013 respectively. And 2014 is expected to continue that trend, despite the lackluster figures found across other Canadian real estate markets. What we’re seeing is that many young Canadians, both renters and those looking for single family homes are turning to Hamilton.
“We have 15 condos on tap for 2014. Migration from the GTA toward Hamilton is driving the building. Industry is mobile. Buyers are looking for the most cost effective location.”
The Ideal Economic Environment for Hamilton
Conditions within the 2014 Canadian economy are ripe for Hamilton to consolidate its position at the head of the housing market. Emboldened by a strengthening manufacturing sector, and with homebuyers across the GTA recognizing the great strides being made across the city, we can look forward to more headway being made in making Hamilton a stronger business and family-oriented community.