Seller’s market to prevail in 2020, prices to increase 3.8%
The Hamilton-Burlington housing market will favour sellers in 2020, with an average residential sale price increase of 3.8 per cent anticipated for the region next year, in line with historical price appreciation.
Hamilton-Burlington is currently experiencing a seller’s market, with 1.9 months of inventory in Hamilton and 1.6 months of inventory in Burlington. Buyers have adjusted to the mortgage stress test and have found other ways to finance home purchases, such as through private lenders as opposed to banks.
There is currently a development freeze in downtown Burlington that could delay future development in the area even further if it is not lifted. The industrial sector in Hamilton has picked back up and the economy is expected to be impacted positively in the coming year. Move-over buyers from the GTA who are looking for more space are driving the market.
Increased GO Train service and higher levels of affordability in the region compared to the GTA are the most influential factors that will impact the Hamilton-Burlington housing market in 2020. Move-over buyers are expected to drive demand in 2020, in particular, moving from the GTA in search of more affordable properties.
The hottest neighbourhoods in Hamilton for 2020 include Leckie Park, Waterdown West and Fifty Point. In Burlington, in-demand neighbourhoods include Brant Hills, Central and The Orchard.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the RE/MAX 2020 Housing Market Outlook Report.
Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).
“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, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”