Subjects: SVY, ECO
Hamilton Home Prices See Healthy Increases in the Third Quarter
Newly built units drive significant condominium price increases
HAMILTON, ON, Oct. 16, 2018 /CNW/ - The aggregate price of a home in Hamilton saw healthy growth in the third quarter of 2018, increasing by 5.2 per cent year-over-year to $571,157, according to the Royal LePage House Price Survey1 and Market Survey Forecast released today.
When broken out by housing type, the median price of a two-storey home increased 5.1 per cent year-over-year to $606,671 in the third quarter, while the median price of a bungalow rose 5.1 per cent year-over-year to $509,384. During the same period, the median price of a condominium increased by 8.9 per cent year-over-year to $344,422.
"Hamilton is moving towards a more balanced market, but well-priced houses are still attracting multiple offers and selling quickly," said Joe Ferrante, broker of record, Royal LePage State Realty. "We have seen demand pick up as the shock from the new mortgage stress test rules wears off and buyers from the Greater Toronto Area and new immigrants continue to choose Hamilton for its affordability."
Ferrante added that price increases in Hamilton, along with the new challenges in qualifying for a mortgage, have made the condo market more attractive to millennials.
"There's a lot of choice for condo buyers as new projects come onto the market," continued Ferrante. "Young people who can't necessarily afford the down payment on a single-family home are starting to show more interest in new condos, and that's increasing prices."
Looking ahead to the fourth quarter of 2018, Hamilton's housing market is expected to continue to move towards balance, with steady price increases and sales activity.
Nationally, year-over-year home prices made modest gains in many regions across Canada in the third quarter of 2018. The Royal LePage National House Price Composite2, compiled from proprietary property data in 63 of the nation's largest real estate markets, showed that the price of a home in Canada increased 2.2 per cent year-over-year to $625,499 in the third quarter. When broken out by housing type, the median price of a two-storey home rose 1.4 per cent year-over-year to $736,337, while the median price of a bungalow climbed 1.5 per cent to $519,886. Condominiums continued to see the highest rate of appreciation nationally when compared to the detached segment, rising 6.7 per cent year-over-year to $441,240.
Looking ahead, Royal LePage is projecting a further uptick in home price appreciation in the fourth quarter, forecasting a 1.5 per cent increase in the aggregate price of a home in Canada over the next three months.
"Positive economic fundamentals, supported by a new agreement on trade, should bolster consumer confidence across Canada and stoke demand in the nation's real estate market," said Phil Soper, president and CEO, Royal LePage. "Dangerously overheated regions have cooled considerably this year, while home prices have remained remarkably resilient. This is the soft landing that policy makers were hoping for."
About the Royal LePage House Price Survey
The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 63 of the nation's largest real estate markets. Housing values in the House Price Survey are based on the Royal LePage National House Price Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of close to 18,000 real estate professionals in more than 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's and children's shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.
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1 | Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions. |
2 | Beginning in the first quarter of 2018, seven real estate markets were added to the Royal LePage National House Price Composite. The new regions are smaller markets in Ontario, Alberta, Quebec and British Columbia. Due to the relative size of the markets, any change to the Royal LePage National House Price Composite is expected to be within 0.15 per cent. |
SOURCE Royal LePage Real Estate Services
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