Hamilton's housing market is "rebounding" according to Abdul Kargbo, Senior Market analyst of the Canada Mortgage and Housing Corporation.
Housing starts in the Hamilton Census Metropolitan Area (CMA) were trending at 3,328 starts in June, up from 3,053 starts in May.
For the past three months, Kargbo says, the trend has been relatively stable and this sudden jump means we are now entering the recovery phase.
At the end of last year, starts were down and borrowing costs were up due to the slow economy.
"Now we see that effect fading off, and a gradual pick up in activity," says Kargbo.
Kargbo says Hamilton has a good mix of housing types being started as well, with condo and apartment construction up from last year. Town houses, he says are also in high demand.
"It’s not just one part of the housing market, it’s both existing a new home markets," says Kargbo, adding that he believes the momentum we’re seeing right now, and the growth in prices, will continue into the first half of next year. After that, he says, it will maintain growth around the same rate as inflation.
The CMHC calculates a six-month moving average of seasonally adjusted annual rates of housing starts. It uses this trend measure to complement the monthly tally of housing starts in order to account for swings in monthly estimates and paint a more complete picture of patterns in the housing market, the organization said.