Housing starts drop fueling growth of 'hottest' market

The market in Hamilton may have seen a decline in housing starts for the month of May but with prices and sales reaching record levels, the housing picture has never been better for investors.

"New projects like the LRT will bring more people here and I believe that the market will stay hot. There's never been a better time to invest in Hamilton," said Cam McCarroll, a sales representative with Harbour Properties.

A recent LRT announcement is also expected to be a “game-changer” for Hamilton and is a signal of why the city is so frequently praised by investors.

“We’ve been dreaming about this for eight years," said McCarroll. "The province announced it a couple of weeks ago and it was hard to contain my excitement.It’s a transformational type of project that will make Hamilton a hot market for years to come.”

His comments highlight tremendous opportunities for investors to get into a hot housing market where prices are increasing due to a limited supply of single-family homes and will only continue to grow as transportation plans are executed and more variety becomes available.

Hamilton hammered its record for homes sales in April, topping the 1,642 homes sold that month with the 1,752 sold in May. What’s more, the average sales prices jumped 10 per cent, to $433,249 compared to May 2014.

Despite the decrease in housing starts for multi-family homes, which Hamilton has in strong supply, starts for single-detached homes were up in May compared to the previous month.

“The limited supply of single-detached homes in established locations in the Greater Toronto Area has resulted in higher prices, which in turn has encouraged some buyers to move to Hamilton,” said the latest CMHC  report.




 

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