Mortgage Market in Hamilton
Growing by every important metric – whether it’s the sales of existing home, new housing, or the decline in vacancy rates – Hamilton, Ontario is making news according to Hamilton mortgage brokers.
On the move
CMHC spotted the trend in 2015 numbers when over 3,219 people relocated from other Ontario communities to Hamilton. Hamilton attractions, new jobs, and the 71 kilometre commute to Toronto promote growth. The shift in demographics should put Hamilton’s population at 784,000 by 2017.
Healthcare, public administration, and social service job opportunities partially explain the attraction. Hamilton hosts 50,750 healthcare workers alone. And, because jobs drive income levels, Hamilton earnings are likely to outpace the inflation rate. This change produces an increase in real wages that citizens are putting into housing.
A delicate balance
One sure sign of that trend is the upswing in sales of existing homes. If, as expected, mortgage rates start increasing slowly into 2017, those sales could reach 17,000 before flattening out in 2017. That upswing should also move average home prices from the $463,00 to $487,000 range to $468,000 to $510,000. Inevitably, such movement leads to new housing starts.
These measures create a delicate balance. That is, jobs attract local immigration. Immigrants need housing. As long as housing is priced within the affordability of those new jobs, you have a nice balance. Low interest rates drive more purchases, and more home sales drive up the pricing. According to CMHC and Hamilton mortgage brokers, the five-year mortgage will likely move from 4.4 to 5.0 per cent. But, in 2017 that could be 4.7 to 5.3 per cent. And, of course, the threat of rate increases accelerates sales.
More evidence of the shift in markets and customers lies in the increase in new construction permits for multi-unit housing like apartments, duplexes, townhouses, and semi-detached homes. This should reduce rental vacancies over 3 per cent as more people seem willing to make the commute to the greater Toronto market.
Of course, any promise has risks. For example, if the townhouse inventory increases, new housing starts may decline. That supply and demand could push pricing too high too soon. Moreover, if the United States’ economic recovery continues, it will create more jobs throughout Ontario and more pull on the housing stock. A flattening of the U.S. economy, on the other hand, reverses the demand. So maintaining the balance lies behind the control of any single economic factor.
Hamilton mortgage brokers
Hamilton residents enjoy their festivals, green spaces, waterfalls, and more. People moving into and within Hamilton will find comfort in the steady appreciation of property values. Sitting at the center of Ontario’s Golden Horseshoe, Hamilton is home to McMaster University, the Canadian Football Hall of Fame, and the Royal Botanical Gardens. People like it there, work there, and want to live there. And, for the last few years, Hamilton mortgage brokers have been able to satisfy customers in need of mortgages, second mortgages, and mortgage refinancing. These mortgage experts help customers solve their financial problems, satisfy their dreams, and buy the home that makes the best sense for them.