Hamilton Mortgage and Housing Report Winter 2016

The 2016/ 2017 Winter Hamilton Mortgage and Housing Report is brought to you by Altrua Mortgage Brokers Hamilton and is supported by data from the Canadian Mortgage and Housing Corporation (CMHC) and the Hamilton Real Estate Board. The key points we will see for the Hamilton mortgage and housing market trends throughout 2017 include:

Increasing housing starts past record levels. Housing construction starts will continue to increase, breaking through 2012 records. This time however there is a shift away from single detached homes towards townhouse dwellings and apartment style condos. Many first time home buyers and those seeking rental investment opportunities within GTA are embracing this housing trend given relatively good values. Specifically, the average housing price in Hamilton was $493,000 where as the average existing housing price in the City of Toronto was $717,213.

Housing Sales will continue to Break Records. According to the CMHC, housing unit sales will lie within the 15,500 to 16,200 range for 2017 maintaining record braking status, and growth will decrease slightly in 2018 due to recent restrictions on mortgage qualifications. First time home buyers in Hamilton are the engine for continued housing growth, and Hamilton’s relatively lower housing costs within the Toronto area/ GTA will also continue to draw attention from first time buyers.

Hamilton Population and Employment growth will remain stable. Hamilton’s employment will edge higher by 0.5% in 2017 in contrast with a projected 0.3% increase in 2016. Moreover, employment is expected to increase by 0.8% in 2018. This employment growth will be driven by the services sector, public-administration and University employment growth, and health care employment. The industrial sector in Hamilton is projected to remain stable, if not decline slightly depending on factors such as the Canadian dollar and US political decisions.

Mortgage Brokers in Hamilton. Mortgage financing through Mortgage Brokers in Hamilton will continue to provide whole sale interest rates that are lower than Banks can offer directly, and will therefore continue to promote housing affordability and growth in Hamilton. Hamilton mortgage brokers project that 5 year fixed mortgage rates will range between 2.5% and 3.5% throughout 2017 and into 2018, representing rates close to all-time lows. This said, variable rates and shorter fixed term rates may trend closer to 2% for 2017, it is more difficult to forecast variable rate trends heading into 2018.

Rental Vacancy Rates in Hamilton. Vacancy rates will continue to be aggressive in Hamilton and edge lower from 3.2% in 2016 to 2.9% in 2017 and 2.5% in 2018. Rental demand from new Canadian immigrants as well as young adults entering the workforce will largely contribute to the declining vacancy rates in Hamilton. So there is a good pipeline of first time buyers that are projected to provide stability for the housing market, and will provide a healthy return on investment to those looking to enter or expand into the rental property investment market.

Connect with your Altrua Hamilton Mortgage Broker for rate quotes and information customised to your situation.