Housing market

[Gurnett71]

BNN video from Globe and Mail. Mayor Bratina comments at 2.20 or so...well, kind of.

http://www.theglobeandmail.com/repor...rticle1956163/

[SteelTown]

LOL Neil is our Mayor?!

Oh Gawd Hamilton!? What?! lol

[thistleclub]

Burlington Apartments Led Starts For June [Marketwire, July 11, 2011]

A rise in starts of apartments in Burlington help total housing starts in June keep pace with the year-ago period. CHMC stats released today for the Hamilton Census Metropolitan Area showed that apartment starts were up in Burlington, but more popular single-detached home starts fell by two-thirds in the area.



In Hamilton, there was a small decline in total starts, although single-detached and townhouses continued to drive that market. Although starts were trending higher through the first half of the year, the pace has slowed down considerably as compared to last year. Total starts were approximately half of the level that they were last year. Starts of all home types have declined significantly on a year-over-year basis during the first half of the year, with the most substantial drop coming from the semi-detached, townhouse, and apartment sectors in Hamilton and Burlington.



"New apartments started in Burlington helped to keep starts up last month," said Sarah Fong, CMHC's Senior Market Analyst for Hamilton. "However, a still-recovering job market has meant buyers are hesitant about making new home purchases, and this has dampened home-building activity," added Fong.


Looks like status quo suburban sprawl is still propping up Hamilton’s stats (going off the latest SpecHomes developer map, all Hamilton housing projects except Urban West, City Square and W Lofts are south of the Linc or east of Fruitland Rd), while Burlington is aloft because of new apartment construction. Oakville, meanwhile, is exploding on all fronts. I'm sure that Hamilton will fare better in the next quarter as its apartment drought begins to ease.

[drpgq]

I posted this National Post link in the Hamilton subreddit, but it probably is of interest here too:

For Sale: Normandy-style chateau in Hamilton
http://life.nationalpost.com/2011/07...u-in-hamilton/

[thistleclub]

Housing Starts Fall 45% Over Last Year [Lisa Grace Marr, Hamilton Spectator, July 12, 2011]

If it wasn’t for the condo kings in Burlington, last month’s home building stats would be a much less encouraging picture, according to figures from the Canada Mortgage and Housing Corporation (CMHC). Data released yesterday shows a rise in starts for condos balanced out a two-thirds decrease in single family housing starts in Burlington. In Hamilton, housing activity slipped by about 9 per cent from June 2010 to June 2011, particularly in single- and semi-detached home construction.

But in fact, growth in housing starts of all types stalled in the Hamilton and Burlington census metropolitan area. CMHC reported in the first five months of this year, the number of total housing starts for Hamilton and Burlington slipped by 45 per cent from 1,790 units in 2010 to 975.

[flar]

Wasn't there a huge increase in housing starts during the first half last year, to get in ahead of the HST?

[hammerton]

There seems to be a lot of price reductions in the 5-10% range in Hamilton lately.

[Berklon]

Originally Posted by hammerton

There seems to be a lot of price reductions in the 5-10% range in Hamilton lately.

I've noticed the same thing... as well as a lot more listings (red dots galore on the MLS site) and many homes just sitting unsold for a long period of time.

[bigguy1231]

Originally Posted by hammerton

There seems to be a lot of price reductions in the 5-10% range in Hamilton lately.

It's called wishful thinking on the part of real estate agents and owners when they initially list the property's.

[CaptainKirk]

Hamilton on the rise

CRE takes a survey of the growing rental market in Canada's steel town

It was once a blue-collar industrial town where 60% of Canada's steel was produced. But when one of its main steel producers almost went bankrupt and the city was hit by the recession, many Canadians wrote it off as a ghost town in training.

However, today, Hamilton is proving those nay-sayers wrong. It is breaking through its past, and, in fact, is poised to outperform most of the province as it sheds its past reputation and grabs a hold of the future. A prime choice for future economic opportunity with an educated workforce, stunning natural amenities and a diverse, resilient economy, Hamilton was ranked one of the top five places to invest in Canada by U.S.-based Selection Magazine

In just a few short years, the continuing diversification of the city's economy will result in an economy unrecognizable when compared to the past decades. This renewal will drive demand for real estate (rentals as well as ownership) in the city, especially in older neighbourhoods going through transition.

Read more here http://www.canadianrealestatemagazin...on-on-the-rise

[SteelTown]

We seriously need luxury rentals in Hamilton. There's virtually zero in Hamilton, only one I'm aware of is Chateau Royale.

[Pearlstreet]

Originally Posted by SteelTown

We seriously need luxury rentals in Hamilton. There's virtually zero in Hamilton, only one I'm aware of is Chateau Royale.

I agree with this comment still today (as this was last year when this was said). I have a couple rentals within the downtown area of Hamilton, all of which have benefitted greatly after a reasonably priced renovation of about 12,000 dollars and the work being performed mainly by myself. For example, a duplex property near the corner of Victoria Ave N and Wilson St was grossing $1400 a month, but after removing the 'Leave it to Beaver' pink kitchen, reusing the cabinets, painting everything, replacing lighting, floors, doors, counter and backsplash etc it looks like a trendy / downtown property should look like. It now earns $2150 a mth gross! I bought this place, including a garage for $152,000 spring 2012.

I don't mind admitting this as I hope the area does improve and with it also my property value, but there really is a saturation of garbage rentals out there. You have little hope to get a decent income - stand out, get rid of your bed bugs , cut your lawns and paint it at least!

[LikeHamilton]

Apartments not easy to come by

Shiona Thompson 900 CHML 12/13/2011

It's a little tougher to find an apartment in Hamilton.
According to figures released from Canada Mortgage and Housing Corporation, Hamilton's rental vacancy rate is down to 3.4 per cent from last year.
That is a decrease of point three per cent.
C-M-H-C says some people are putting off buying a house this year and are opting to keep paying rent for a while longer.
Canada's national housing agency says the trend is more pronounced in Brantford where the vacancy rate is down to 1.8 per cent a drop of about two full points.

[Vod_Kann]

Interesting- People keep bugging me buy a house so I don't "throw my money away renting". Yet I don't pay taxes, heat, hydro or water- so am I really throwing my money away?

looks like more people are thnking the same

[durandy]

houses are only a good investment if you rent out a room in them. House with basement apartment is fantastic investment. Avoids most of the problems with being a landlord, allows tax deductions, pretty easy to get junk tenants out as well.

[Jon Dalton]

I tend to agree. I bought a house and rent out (to great people) to help cover costs. However there is no way I could afford bills, taxes and upkeep if I were going it alone. Plus what happens when interest rates rise and mortgages are no longer cheap. Houses are great if you can make the system work to your advantage, but there is always wisdom in keeping your costs fixed.

[Duckyboy]

Originally Posted by durandy

houses are only a good investment if you rent out a room in them. House with basement apartment is fantastic investment. Avoids most of the problems with being a landlord, allows tax deductions, pretty easy to get junk tenants out as well.

You still have to be landlord with a basement suite... just a little less travel time: you still have to collect rent, perform repairs and make sure the unit is occupied. There are also (obviously) tax deductions involved with investments properties... otherwise NOBODY would be a landlord.

Also, how is it any easier evicting a crappy tenant from your basement as opposed to your investment property?

Unless I'm missing something, they seem to be quite similar (I've had and have both right now).

[markbarbera]

Originally Posted by Vod_Kann

Interesting- People keep bugging me buy a house so I don't "throw my money away renting". Yet I don't pay taxes, heat, hydro or water- so am I really throwing my money away?

looks like more people are thnking the same

You may not be paying taxes or utilities directly, but all that is factored into your monthly rent.

Renting vs ownership is more about what most suits your lifestyle, so do whatever suits your needs. If you don't want to worry about home maintenance or want to be flexible in relocating residences, renting is probably a good option. If you are someone who stays put, ownership means your monthly housing costs are an investment that will eventually return a gain when the day comes to sell, rather than an irrecoverable expense when housing costs are in the form of rent.

[flar]

It's better to buy if you plan to stay put, the price is right and there's a good chance the property will hold its value. It's definitely smart to be rent and mortgage free when you retire. Or to sell your house, use the money to buy something smaller and add the profit to your savings. Those are pretty common strategies.


I would probably buy in certain areas of Hamilton. In Ottawa, I rent and have no immediate plans to buy. The problem in Ottawa is that a mortgage payment is roughly double the rent for an equivalent dwelling, which suggests that houses are overvalued at the moment.

[Duckyboy]

Originally Posted by Vod_Kann

Interesting- People keep bugging me buy a house so I don't "throw my money away renting". Yet I don't pay taxes, heat, hydro or water- so am I really throwing my money away?

looks like more people are thinking the same

The thing most forget is this: you have no asset when renting. When you own a house, you have the ability to sell and cash in... there is no option with renting.

I'm not saying what you should and shouldn't do, but it sure is nice to be sitting on (potentially) hundreds of thousands of dollars, instead of making someone else rich.

And yes, the bank get's rich off of you, but at least you get a house out of it; you don't get shit from renting.

Everyone has different needs, and renting suites many, and ownership suites others.