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The Canada Mortgage and Housing Corporation says Hamilton’s housing prices are ‘strongly overvalued’. The city is joining the likes of red hot markets in Toronto and Vancouver for the first time just not in the same scale. But with more and more non-Hamiltonians snapping up houses over-asking, prices keep going up and locals are getting shut out.
The average price of a home in Hamilton is just over $435 000, up nearly 12% from last near and nearly double prices from just four years ago. While the C-M-H-C factored Hamilton’s slow-growing population, low employment and family income in their measurements local realtors are pointing at another issue. Unlike in Vancouver and Toronto where there’s a good amount of foreign investors jumping on houses, sitting on them and selling them for a massive profit a year later, in Hamilton, there just aren’t enough houses and condos to go around.
While there has been plenty of condo announcements, like the Royal Connaught on King street, there’s just one problem, “they aren’t on the market and until they come up on the market we have an under supply issue and that that’s compounding the price increase.” Marvin Ryder.
While inflated prices are being welcomed by sellers who are looking to downsize or make a quick buck, many more people are hoping this bubble pops.