Hamilton's housing market is on the way up, according to a new report, and the city has homebuyers from the GTA to thank.
"The housing market will benefit from people leaving the [Greater Toronto Area] and heading to Hamilton," said Abdul Kargbo, market analyst for the Canadian Mortgage and Housing Corporation who worked on the spring outlook report.
Kargbo projected the housing market would stabilize after seeing an increase in purchases in April and May, compared to those months last year.
That increase is in large part because more people are noticing the average price differential between a single, detached home in Toronto versus Hamilton, Kargbo said — it is over $150,000.
"That itself is enough to encourage buyers, especially first-time home buyers," he said.
Couple that with an improving job market in Hamilton and a strengthening economy in the second half of this year and Kargbo said, "I don't see that stopping any time soon."
In addition to migration from the GTA, international immigration also accounts for a large portion of homebuyers in Hamilton, Kargbo said.
Despite the good news, Kargbo said he still wants to be cautious reporting these numbers.
"They are influenced by the type of dwelling," he said. "May saw more high-end homes sold."
Higher home purchase prices make for a sunnier outlook, he said.
The CMHC reports the current average home price in Hamilton, with a seasonal adjustment, is $398,800.