Hamilton condo sales heating up, real estate platform data shows
Condo sales in Hamilton are on the rise, according to an analysis by real estate sales platform Strata.ca.
In a report released Tuesday, Strata.ca noted 75 condos were sold in Hamilton last month, more than three times those sold in March 2020, at the start of the COVID-19 pandemic.
Not only do you get more value per square foot in Hamilton, but units here tend to be more spacious," Strata.ca founder Robert Van Rhijn said in the report, adding that less density compared to other urban settings really lends itself to a different quality of life."
The price per square foot for Hamilton condos has fallen to $501, compared to February's record of $535, which Strata.ca attributes to an increase in inventory.
Price surges in Hamilton, Toronto, Ottawa, Moncton and Halifax were noted in the Canada Mortgage and Housing Corporation's (CMHC) last quarterly assessment in March. Most sales growth was disproportionately in properties of more than 2,000 square feet - in other words, detached homes and not condos.
Prices rose as the city experienced a spike in move-over buyers" leaving their neighbouring regions in favour of a home purchase in Hamilton.
When it comes to condos, West Mountain and Red Hill-Vincent-Gershome neighbourhoods have an average sale price of between $522,000 and $538,000, and remain most affordable," Strata.ca found, in contrast with high prices seen in Lakeshore-Stoney Creek and Downtown Hamilton.
Low mortgage rates are one of the factors driving a greater number of first-time buyers, the CMHC said last month.
A new minimum qualifying rate proposed by Canada's bank regulator, the Office of the Superintendent of Financial Institutions (OSFI), could see some changes to raise the mortgage rate for uninsured buyers to 5.25 per cent - up from 4.79 per cent - or two points above the market rate, depending on which is higher.
The new rate will be effective June 1, and may make it more challenging for certain buyers to qualify for a mortgage if they are unable to prove they can pay the loan at the higher rate, despite what a lender may approve them for.
Vjosa Isai is a reporter at The Spectator covering Hamilton-based business. Reach her via email: visai@thespec.com.