Key Takeaways The benchmark price for a home in Metro Vancouver was $1,261,100 in May 2022, a 15% year-on-year increase compared to May 2021.House prices have risen in Vancouver for 24 months until May 2022, where they dropped for the…
- Hamilton has seen record growth in housing prices during the last two years, with an increase of over 65% since the beginning of the pandemic in the average price of a home in the city.
- The average sold price of a residential property in Hamilton was $1,003,193 as of February 2022.
- Strong demand from migration, move-up, and move-over buyers has pushed the Hamilton housing market to record highs in 2022.
- House prices are expected to rise in Hamilton in 2022.
Hamilton Housing Market Outlook (2022)
Low supply and superheated demand has pushed the Hamilton housing market to record highs during the pandemic. The average price of a Hamilton home hit the $1 million mark for the first time in history this year. In February 2022, the average price of a house in Hamilton was $1,003,193, an increase of 24.7% year-over-year. February 2021’s average house price ($804,223) was itself a staggering 32.9% rise compared to 2020, at $605,140. Overall, in just two years, the average price of a home in Hamilton has gone up by an eye-watering 65.78%.
Although supply has started to improve in terms of available inventory, this is likely seasonal, as many seller’s wait until Spring to show their homes. While mortgage rates are steadily increasing due to the Bank of Canada’s interest rate hikes, it’s unlikely that we’ll see prices drop in the Hamilton-Burlington market any time soon. Although prices may not increase with the same intensity as they have been throughout the pandemic, expect to see further increases for the remainder of 2022.
Who’s buying Hamilton real estate?
First time homebuyers
Despite a number of first time home buyer incentives in Ontario, competition in the province has been fierce for the last two years. Hamilton, like many secondary cities close to the Greater Toronto Area, has seen huge price hikes, with thousands of new homebuyers moving out of the GTA and in from other provinces. While Hamilton’s demographic is gradually shifting towards a younger, millennial population, first-time buyers will continue to struggle in Hamilton as mortgage rates continue to rise, and the average price of a home in the city exceeds $1 million.
Out-of-province home buyers
According to a recent City of Hamilton Residential Market Analysis by Lorius and Associates, immigration continues to be a driving factor for the Hamilton real estate market, particularly since Canada’s borders have begun to progressively reopen in the wake of the pandemic’s peak. With a record number of new permanent residents admitted to Canada in 2021, Ontario’s already limited housing inventory has experienced even further pressures on demand, driving prices up further.
The average price across all residential categories in Hamilton/Burlington reached $1,058,756 in January 2022, pushing it over the $1M mark for the first time ever. Burlington outpaced Hamilton in the detached housing market, with the average sale price of a detached home in Burlington hitting an incredible $1,765,884, compared to an already high $1,089,916 in Hamilton in February 2022. 10 years ago, this would have been considered luxury pricing, but in today’s terms, these prices are the norm. According to RE/MAX’s 2022 Luxury Market Report, there were 1,863 properties in the plus-$1 million mark in Hamilton, an increase of 199.5% compared to 2020’s figure, at 622.
Average Home Prices in Hamilton
The average price of a home in Hamilton has increased 25% compared to March 2021, to a total price of $1,003,193. While detached homes have seen major price increases since the beginning of the pandemic (up 26% to the $1.11million mark in March 2022), condos have seen the greatest amount of price appreciation over the last year. After a huge increase of 34%, the average price of a condo in Hamilton now sits at $620,303. Finally, semi-detached/townhouses have followed suit, seeing a 25% increase in price since March 2021, to just under $869,000.
|Property Type||Average Price (March 2022)||Year-on-year Price Change (%)||Units Sold (April 2022)||New Listings (April 2022)|
|All property types||$1,003,193||+25%||984||2007|
|Semi-Detached / Townhouse||$868,675||+25%||146||378|
Hamilton Breakdown by Region for 2021-2022
Here are the top ten neighborhoods in Hamilton this year based on average sold price. To find out how much your mortgage payments would cost in any one of these areas, check out our mortgage calculator.
|Location||Average sale price in 2021|
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Reports Indicate Strong 2022 for Hamilton Housing Market
Hamilton is expected to be a seller’s market in 2022, with so-called ‘move-up’ and ‘move-over’ buyers driving demand throughout the rest of the year. As of May 2022, Hamilton MLS® statistics show an average house price of $944,291 and 2,007 new listings in the last 28 days. In the first week of May, Hamilton housing data shows median days on market for a home is 11 days. Inventory is slowly increasing, as more homes are listed following a long winter period. However, although sales are slowing year-over-year, which could suggest the market is cooling off, average days listed tells another story. Demand will remain high throughout 2022, though perhaps not at the pace we’ve seen over the last two years. It remains to be seen whether increases in interest rates will have a significant cooling effect on this consistently solid Ontario housing market.
Frequently asked questions
Is the Hamilton housing market going to crash?
Despite rising interest rates and a ban on foreign buyers, it’s not likely that the Hamilton housing market will crash this year. Inventory is opening up slightly but this may be due to seasonal factors, and demand remains at an all-time high. As more buyers look to secure homes before interest rates increase further, Hamilton is going to see further price increases, at a steady rate throughout 2022.
Will Hamilton housing prices increase in 2022?
Forecasts suggest that the average price of a home will increase in Hamilton throughout 2022, though we may begin to see some downturn activity towards the latter half of the year. Demand remains high, supply remains low, and we are nearly half way through the year. While many factors can affect housing prices, Hamilton has seen one of the most sustained periods of growth in its history, and it’s likely that further price rises will occur before the year is up.
How do I get approved for a mortgage in Hamilton?
Start by exploring today’s mortgage rates and see how much mortgage you could afford. Approval depends on the lender you want to choose, so it’s worth discussing these factors with one of our mortgage advisors to see what solution fits for you. At nesto, we compare the best rates available in Canada, and we also lend directly.
Hamilton has experienced record growth since the beginning of the pandemic. Mass immigration, huge domestic demand, low inventory, and the pull of a market so close to Toronto have combined to make Hamilton one of the fastest growing housing sectors in the country. Compared to the Toronto housing market, Hamilton remains a relatively affordable option. However, with the average price of a property exceeding $1 million, buyers will need to ensure they’re prepared to find the best rate available. If you’re ready to buy a property in Hamilton, get in touch with us, and one of our mortgage professionals will help you get started.
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