Hello Everyone Investing in Real Estate in Hamilton Ontario!!
Too bad about the Blue Jays falling to the excellent team of KC Royals. They beat us in every aspect of the game and I won’t be surprised if they win the World Series. Cherry, Bruce and I were lucky enough to attend game 4 of the Championship Series at the Skydome and even though we got blown out, I was grateful for many things:
- It was our first playoff baseball game
- Toronto fans are some of the best. No one was leaving and everyone was believing we could come back until the score was out of hand at 12-2.
- You know when the noise level gets so loud that your ears hurt? That’s how loud it was when Josh Donaldson hit a 2 run RBI double. Wow, what a rush!
There’s always next season and I’m sure there will be October baseball again.
CMHC Hamilton Real Estate Housing Outlook
Here are some snippets from the Hamilton real estate Housing Outlook I thought were of interest:
“The proportion of multi-unit housing starts will increase to 58 per cent in 2017 from 51 per cent in 2015… A tight resale market where the supply of affordable homes is limited will propel some buyers to purchase less expensive types of new homes. This in turn will support multi-unit housing starts in the next two years.“
“The expected increase in mortgage rates coupled with elevated prices will result in carrying costs rising faster than incomes.
“Sales-to-New-Listings Ratio (SNLR1 ) to be in the range of 65 to 75 per cent in 2016 and 2017. In line with strong sellers’ market conditions, the average existing home price in the Hamilton CMA will increase by seven per cent in 2015. The average existing home price will increase to $451,000 in 2016 and $462,500 in 2017”
“Hamilton is still considered a more affordable housing market and will continue to attract potential homebuyers from the less affordable municipalities.”
“Hamilton’s average rental apartment vacancy rate will edge lower from 2.4 per cent in 2015, to 2.2 per cent in 2016. The average vacancy rate will decline further to two per cent in 2017.”
“Strong employment among young adults and stable international migration will increase the demand for rental accommodation. On a net basis, Hamilton welcomed 3,378 immigrants in 2014. This may translate to approximately 1,130 households based on an average size of three persons per household. New immigrants typically move into rental accommodation when they first arrive in Canada.”
My insights and takeaways from the report are
- Multi-unit housing includes apartments, townhouses, semis
- The mix of new housing is moving towards higher density due to affordability to attract first time buyers, empty nesters, etc…
- Our preference is still to invest in a house on land whether it be a townhouse or semi without a condo fee.
- (Fixed) mortgage rates are expected to rise so you may want to invest or lock in sooner than later and/or choose a variable rate mortgage
- Strong sellers markets predicted for 2016-2017: expect prices to go up so you may want to invest sooner rather than later (sorry for sounding like a broken record)
- Vacancy will continue to decline, my clients continue to report a tight rental market where vacancies do not last.
- Strong employment growth, in-migration and immigration. And you wonder why Hamilton is a top town for investing?
Transit improvements are still years away and the future for Hamilton couldn’t be brighter. I think you investors know what you need to do, the same thing Cherry, Bruce, and I (Erwin) are doing which is buying a house in Hamilton.
Thanks for reading and happy Hamilton real estate investing everyone!
Erwin | MrHamilton.ca
PS: If you are just starting out investing, start by spending more time with like minded people and take guided tour of Hamilton by joining us for the next Mr. Hamilton Inner Circle by clicking here!!!