The Spring 2010 report indicates that total MLS housing sales are to reach 13,600 units in the Hamilton and area market. However, this momentum should decrease towards the later part of 2010 and into 2011 with the introduction of HST on new home sales and a possible increase in Hamilton mortgage rates. Housing starts should total 3000 units in Hamilton in 2010 and just over 400 in Brantford. More specifically, about half of the sales in 2010 will occur in the Mountain and Burlington areas of Hamilton, and that extensive research demonstrates that both of these areas are highly attractive destinations for families and those working in the surrounding area. Notably, existing home sales will remain strong over the long term. This is because of a wide gap forming between the price of a resale single detached home and that of a new home. This said, sales in general may slow through 2011. Hamilton mortgage rates should remain attractive, and the increase in the price of mortgages will depend on the strength of the economy in general.
Specifically, Hamilton will see MLS listings increase by more than 4% and Brantford will see an increase of 5%. The report mentions that the value of an existing home in Hamilton is set to increase by 8%, which indicates a sellers housing market. It is projected that a large number of homes listed will be sold rather easily with multiple offers, thus moving home pricing higher. Moving forward into 2011, it is expected that prices will move up with the rate of inflation. In Hamilton Ontario, the new home market is picking up with construction beginning on 3000 homes. This tells a story of solid demand for new homes, especially townhouses in both markets. In the Hamilton/Burlington area, construction of single detached homes will begin to overtaken by townhouses and apartments due to lack of land space, as well as the affordability of these homes. Finally, relatively low mortgage rates in Hamilton will support the housing growth and intensification.
Employment research indicates that Hamilton will record a rate of 8%, which sits on the lower end of the local employment spectrum . This said, the health and education sectors should be major catalysts for local employment increases. Also, despite lower employment in 2010, the average weekly earnings continue to rise. Jobs that were lost in the manufacturing sector are beginning to trickle back on a more part time basis.
At the time of writing, the current overnight mortgage in Hamilton Ontario is 0.5%, and is expected to rise in the later part of 2010 along with fixed rates. Importantly, mortgage rates could rise at a swifter pace if there is a stronger economic recovery.
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