The tale of three first-time Hamilton homebuyers — the hopeful, downhearted and victorious

The position of hopeful first-time homebuyers in Hamilton's real estate market all depends on who you ask - and who the buyers might be.

Aileen Black is living with her parents until she can buy a place in her hometown. Linnea Vollick and her boyfriend are hoping the third time's the charm to get pre-approved for a mortgage. And Delaney Caulfield and Rebecca Potter moved an hour and a half away to get the house of their dreams.

For the last two years, Hamilton realtor Nikhil Bhanwra has seen people hoping to buy their first home in the city get put through the ringer."

They've faced a supply shortage, skyrocketing prices, ferocious bidding wars and the push for sometimes risky, condition-free offers. Now, they're staring down interest rates that are set to keep climbing.

But while Steeltown's housing market was red hot for more than two years, it is now cooling ever so slightly with incremental interest rate hikes from the Bank of Canada.

As the market cools, Bhanwra believes some first-time buyers are poised to take advantage of what's to come."

Even still, the average price for a detached home in Hamilton was $949,730 in June - a decade ago, the yearly average hovered around $297,960. And last year, research from Oxford Economics showed Hamilton was the fifth-least affordable city in North America when it came to the cost of housing alone.

Mortgage broker Boyce Collins said with those prices, he's seen buyers become increasingly pragmatic" with their expectations, while some opted to move out of province in order to get the home they want.

The Spectator spoke to three potential first-time homebuyers about their experiences with the market. Here are their stories:

I feel like I missed the boat'

Aileen Black thought she did everything she could to put herself on the path to success.

The 30-year-old went to post-secondary for five years. She got a job as a business development and marketing specialist for an international law firm in downtown Hamilton.

However, despite three years of trying, one piece hasn't fallen into place - owning a house in her hometown.

Black admits that she's privileged. She has zero student debt and has been able to live with her parents while saving up money for a down payment and subsequent mortgage.

But as a single person, she says every time she thought she had enough money to make another stab at the market, prices have climbed and sellers' expectations have changed.

I feel like I missed the boat," said Black, noting that friends who own homes in the city are either married or bought before the pandemic. I'm one of the lucky ones and I can't even get in."

Black's budget has a ceiling of around $650,000, but she has set her searches at $450,000, knowing some homes are still going over asking. She's also prepared to put between five to 20 per cent down and has a co-signer for her mortgage.

In terms of the Hamilton market, homes listed under $450,000 are somewhat sprinkled throughout the city. Properties in that price range occasionally come up for sale on the Mountain, but most are located in the central-east part of the lower city.

There were fewer than a dozen homes listed for under $450,000 in early July. Many require renovations, but are marketed toward first-time buyers and investors.

Black has put in three different offers on homes in the city - all with no bites. Her most recent bid this past spring, however, has been the most angering.

Black said she found a small semi-detached home in an up-and-coming" neighbourhood off Barton Street East listed for $449,000. She put in a firm offer of $460,000 with no conditions and a flexible move-in date.

To her knowledge, she was the only interested buyer.

The seller rejected that offer, and then re-listed it two days later for $500,000," said Black. I'm hoping prices will go down, but that means interest rates go up, so I can't really win."

Black said in other bids, she's written letters to the sellers that detail her situation as well as the creative solutions" she's drummed up to make home ownership work. It also angers her when others say she should wait until she's married to buy a house, as she wants to do it alone.

However, Black remains hopeful that home prices will continue to drop and her time will finally come to purchase a home in the city.

I would like to stay in Hamilton, but it's a pipe dream," she said. I want to move on with my life, and so do my parents."

It's been quite the heartache'

Linnea Vollick and her boyfriend Michael are hopeful that the third time will be the charm when it comes to successful pre-approved mortgage applications.

The Hamilton couple has applied for a mortgage twice - both times without success, even after they changed jobs to be more appealing to brokers.

Vollick said she went from working part-time at a pet store to working full-time at a cleaning company for above minimum wage. Her boyfriend switched jobs within his union to ensure he was guaranteed 45 hours a week.

Even then, it wasn't enough.

It's been a nightmare," said Vollick, 26. I feel like I've been really naive about the process."

The couple began thinking about buying a home in Steeltown nearly two years ago. However, they've spent the last eight months working to get pre-approved for a mortgage.

The couple was hoping to buy a house, but since moved their search to condominiums to make it easier" on themselves, even with the typical monthly fees. Their plan is to grow their buying capabilities from there.

They're hoping to remain in Hamilton due to their jobs.

Vollick said their budget will depend on what they are pre-approved for - something they may not know for a few more months, as they've been recommended to wait at least six months between applications.

But the couple is also concerned about rising interest rates, which will ultimately affect both their ability to borrow and eat into their savings.

Even then, we're not sure if it will be good enough," she said, pointing to their collective savings of more than $50,000. We might have to save up even more money."

For example, a condominium in the Ainslie Wood neighbourhood in west Hamilton was recently listed at $498,000. Even with a little more than 10 per cent down, the couple would still be paying more than an estimated $55,000 to seal the deal - which includes lawyer fees, land transfer tax and a home inspection.

Their entire savings would be consumed, leaving no leftover money for potential renovations, moving expenses or condominium fees.

Vollick said for now, the couple is lucky to be able to live in the basement of a family member's home in east Hamilton until they get out on their own.

Their current neighbourhood is where they could possibly afford a home, depending on their mortgage - but even then, some properties are still going over asking.

Vollick said as someone who spent her childhood living in Hamilton and Burlington, creating her own life in the place she has called home now feels unattainable."

She has even questioned whether they'll be able to afford to move out as rent continues to skyrocket.

Moving out and having my own space is really important to me," said Vollick. So it's been quite the heartache."

Hamilton was out of reach'

Delaney Caulfield and her partner Rebecca Potter knew they weren't going to find the house of their dreams, for a price they could afford, in Hamilton.

The pair spent a whole year watching home prices in the city creep higher and higher, while the sizes of said properties continued to shrink at the same time.

And once they were ready to start looking, they realized Hamilton was out of reach," said Potter, 30.

With their budget of $600,000, the pair wanted a detached, move-in-ready home that had a fenced yard for their dog, Geri. They also needed multiple bedrooms, as they both work from home.

So, they started looking elsewhere - giving their real estate agent a two-hour radius from Steeltown.

Caulfield, 31, who is a staff member at The Hamilton Spectator, said their realtor sent them options in Tillsonburg, but as a visibly queer couple, they weren't comfortable living in such a rural community.

And after around a dozen viewings, they found a four-bedroom home that ticked all their boxes about an hour-and-a-half way in London, Ont.

The couple moved quickly to put in an offer on the home that same night as they got word of other bids from their realtor. The property was listed for $519,000, but had previously been listed for $549,900.

Potter said once their finances were approved, they went in with their best offer" of $600,000 and no conditions. They also secured a $10,000 deposit with the help of a family member.

The seller came back with their conditions, which included selling a second property within 10 days. And in turn, Caulfield and Potter added a condition of requiring a home inspection.

And then all we could do was wait," said Caulfield. It was mad stressful."

Ten days later, the home was theirs.

In early July, there were around eight homes in Hamilton listed for under $600,000 that had similar characteristics to the home Caulfield and Potter bought in London. The condition of each of the homes varied from move-in ready to in need of renovations.

Potter and Caulfield said the thought of new beginnings is exciting," as they are within walking distance to the downtown, the Western Fair and plenty of families live in the neighbourhood.

However, Caulfield said being priced out of the city is frustrating," as someone who born and raised in Hamilton.

When I was younger, I thought I could have something here," said Caulfield, who watched folks migrate from Toronto to Hamilton over the years. It's like I was displaced from my home."

The couple has also floated the possibility of returning once they are able to build up equity with their new home, which would allow them to buy in the city.

Hopefully things will have changed by then," said Potter.

Fallon Hewitt is a reporter at The Spectator. fhewitt@thespec.com