Hamilton-Burlington average home price to rise 3.8 per cent in 2020, ReMax estimates
Compared to a 3.7 per cent national increase for the average home price
The average selling price of a home in the Hamilton-Burlington region is estimated to increase by 3.8 per cent next year, according to a recent market outlook release from ReMax Canada.
That increase — which the company says is "in line with historical price appreciation" — is expected to maintain the region's status as a "seller's market," with demand for housing continuing to grow.
In 2019, ReMax calculated the average home price as $591,481 for the Hamilton-Burlington area. Their forecast for 2020 has the average price up to $613,958, an increase of 3.8 per cent.
As of this October, a report from the Realtors Association of Hamilton-Burlington (RAHB) found the average price of a house in Hamilton was up nine per cent, compared to a year ago.
The ReMax release points to "move-over buyers" from the Greater Toronto Area, who the company expects will drive demand in Hamilton-Burlington in 2020.
Those buyers have mainly been drawn to the area due to "higher levels of affordability" than Toronto, the release said, as well as "increased GO Train service" to-and-from the region.
The revival of Hamilton's industrial sector is also a driving force in the expected rise in home prices, the release notes, with an expected positive impact on the city's economy next year.
"Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains," says Christopher Alexander, Executive Vice President and Regional Director of ReMax Ontario-Atlantic Canada.
Hamilton's market currently holds 1.9 months of "inventory," and Burlington possesses 1.6 months worth — meaning that's how long it would take to liquidate the existing housing supply, based on the current rate of sales in the city.
In comparison to the nation-wide 4.4 months of inventory — according to an October market report from the Canadian Real Estate Association — supply numbers for Hamilton and Burlington are quite low.
Neighbourhoods to watch in 2020, according to ReMax, include Leckie Park, Waterdown West and Fifty Point in Hamilton. Brant Hills, Central and The Orchard are in demand areas in Burlington.
A development freeze in downtown Burlington has further limited supply for home buyers, forcing those who want to buy in the area to look elsewhere. The freeze could delay future development "even further" if it isn't lifted, according to the release.
Alexander credited the province's "resilient economy, staggering population growth and relentless development" for the continuing price appreciation.
On a national scale, ReMax estimates a 3.7 per cent increase in the average home selling price.