With the dawn of 2024, curiosity abounds Canadians pertinent to the state of the Hamilton housing market. The interplay of fluctuating interest rates, changing demographics, and government policies holds the potential to significantly influence the Hamilton and Burlington real estate market. Moreover, it should be noted that high interest rates have impacted both homebuyers and sellers in these regions. This stems from the BoC’s rate hikes on interest rates. Consequently, the result is a 6% fixed mortgage rate across Canada. However, some regions have higher mortgage rates than others. Despite perceived unpredictability, there’s still a level of predictability, prompting this blog’s focus on the 2024 Hamilton-Burlington market trends.
A Look at the Hamilton Housing Market
Currently, there is a dull demand in the housing market in Hamilton and Burlington. According to the (RAHB) Realtors Association of Hamilton and Burlington in October 2023, the sales of residential properties saw a slight decline. You might think that with fewer transactions, prices would’ve also seen a similar trend. Well, that’s not the case, as in Burlington the average home selling price increased at an annual rate of 6%, which is around $1.159 million.
Here is a summarised version of the market situation.
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Housing demand in Hamilton and Burlington is currently in slack. |
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October 2023 saw a decline in residential property sales:
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Despite reduced transactions, prices didn’t follow a similar trend:
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Both cities saw improved housing stocks in October 2023:
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An Insight About the Hamilton-Burlington Housing Markets in 2024
It is believed that the real estate market in Hamilton and Burlington will continue to perform well despite market alterations in 2024. According to the HMO (RE/MAX Housing Market Outlook) report, the prices are expected to increase by 3.5% to around $832000 in Hamilton. Interestingly, the housing market sales are expected to increase by 2%. The region will have a balanced real estate market next year. Coming to Burlington, the housing rates are expected to increase by 4% to around $1.148 million. Additionally, there will be an increase in sales with transactions rising by 3%. Hence, we can say that the Burlington real estate market will become more balanced.
In the Burlington real estate market, there could be an increase in the demand for condos. This is a positive sign as in October 2023, the condominium market was mixed as per the local real estate association data. Although the benchmark prices grew by 3% to $622,000, Burlington saw a fall in apartment sales by 41.5% year-over-year. However, Hamilton saw a 19% increase in condominium sales and a 6% decrease ($490,000) in the benchmark prices. Interestingly, there could be an increase in demand for single-family homes in Hamilton. As per RAHB data (October 2023). in Hamilton, detached home sales dropped by 18% and fell 1% ($816,300). Burlington saw a 10% decrease in the single-family home sales. However, the benchmark prices totalled 3% ($1.322 million).
How Much Will the Interest Rates Rise/ Fall?
Canada’s housing market is the largest industry, contributing approximately 40% to the country’s GDP. The Bank of Canada has hinted that interest rates in the housing market will likely remain high throughout 2024. The rates are expected to stay unchanged until policymakers observe a return to the 2% inflation target, which might not happen until 2025. However, there is a possibility of a rate cut by monetary authorities in early 2024. While authorities aim to curb inflation, the Bank of Canada sees a potential relaxation in monetary policy if the real estate market cools down.
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Summing Up
The real estate market in Hamilton and Burlington depends on various factors such as housing market interest rates, prices, mortgage rates, inflation and government policies. It is important to note that there are some external factors as well which affect the real estate market. As a prospective buyer/ seller, one should be aware of the market trends to make informed decisions. Therefore, consider looking at some predictions about the possible condition of the real estate market in 2024. This way you can be prepared for the worst or the best.
Frequently Asked Questions (FAQs)
Yes, housing prices for semi-detached homes have reduced in Hamilton. However, there has been an increase in the price of detached houses.
The average price of a house in Burlington Ontario is around $1.14-$1.15 million.
The housing market in Canada might see some trends like higher interest rates in early 2024 followed by an increase in housing prices by the second half of 2024.
The housing prices in Ontario can increase by over 6%. It is also believed that the prices will remain unchanged in the first half of 2024, followed by an increase in the second half. Are housing prices dropping in Hamilton?
What is the average price of a house in Burlington, Ontario?
What will the housing market look like in 2024 in Canada?
What is the housing forecast for Ontario 2024?
