Boom town: Hamilton housing predicted to stay hot in 2015
Hamilton the only big Canadian city with price increases projected over 2 years, TD says
http://www.cbc.ca/news/canada/hamilton/n...-predicted-to-stay-hot-in-2015-1.2883809
Major Canadian bank economists say Hamilton will continue to be one of the strongest housing markets in the country in 2015.
Some predictions are even more striking.
“For 2015-2016, Hamilton is the only city where we actually have home prices growing over the two years,” said TD real estate economist Diana Petramala.
The TD analysis looks at the largest 14 cities in Canada.
Over the last few years, Hamilton’s housing market has been hot, often ahead of the pack in how much prices rose or how many homes sold. The market has been a frequent talking point, its strength touted as evidence of the city's vibrancy.
Hamilton, where prices rose six per cent last year, has been experiencing the kind of sales and price activity more typical in Vancouver, Calgary and Toronto. While the rest of the country may wonder about the continued strength of local housing markets, Hamilton appears poised to remain hot in 2015.
BMO Financial Group economists expect national housing prices to “scratch out a small gain” in 2015, said chief economist Doug Porter.
No scratching expected in Hamilton.
“I have to say the dynamics in Hamilton looks to be one of the firmer markets in the country,” Porter said.
The projected strength comes as builders try to keep up with demand. There are more than a dozen condo and townhome projects comprising hundreds of units in downtown Hamilton alone, under construction or about to start.
Less clear than the cranes in the air: What effect the continued frenzy will have on Hamilton neighbourhoods and whether first-time buyers will find a way in to homeownership.
Rising prices are good news for homeowners, but not usually for those who haven’t bought in to the market yet.
"It’s now, I think, pretty much an established fact that Hamilton's beginning to experience gentrification," said Richard Harris, who teaches a fourth-year real estate class at McMaster University. "For such a long time that just seemed like something that had passed Hamilton by."
More supply on the way
The pipeline has hundreds of units on the way in projects that have been recently completed, are under construction or about to commence. Here are just a few with more than 75 units, from the city's urban renewal department:
City Square Phase 2 — 85 Robinson: 99 units.
Residences at Acclamation – James Street North: 60 units.
150 Main Street West: 142 units.
Royal Connaught – King St E: 697 units over five phases.
The Connolly – James St. S: estimated 259 condos, proposed 30 storey.
Artizen Condos – James St. N: estimated 100 units.
Spallacci Homes – 101 Locke Street: estimated 104 units.
467 Charlton Ave. East: 162 units.
220 Cannon Street (Vrancor) – 12 storey, mixed use – estimated 100 units.
Tivoli Theatre condos – estimated 106 units.
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Arrears rates will help tell the story in 2015 - these are currently highest in Atlantic Canada and lowest in Ontario.
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