Demand for all housing types high as inventory challenges continue
HAMILTON, October 15, 2021 – According to the Royal LePage House Price Survey released today, the aggregate[1]price of a home in Hamilton increased 19.0 per cent year-over-year to $772,500 in the third quarter of 2021. During that same period, the median price of a single-family detached home increased 18.7 per cent to $806,200 and the median price of a condominium increased 18.1 per cent to $485,000.
“Home prices are rising to new levels in Hamilton. Many buyers continue to be those relocating from the GTA. Those who are releasing equity from an existing property have sizable budgets,” said Joe Ferrante, broker of record, Royal LePage State Realty. “The relief that first-time buyers need to get into the market can only come through more inventory.”
Ferrante noted that the city is missing a big opportunity for growth. As development has lagged behind demand, potential local buyers are leaving the region in search of affordability.
“Hamilton is expecting a surge in population but if we are not building homes fast enough, there won’t be enough homes for everyone,” said Ferrante. “We are expecting Hamilton to stay firmly in a seller’s market for the foreseeable future. If supply does not increase and demand persists, prices should rise further.”
Ferrante added that listings seasonally decline in the fourth quarter but demand continues to increase.
“If listings don’t materialize in the new year, we can expect 2022 to look a lot like 2021,” said Ferrante.
Nationally, the aggregate price of a home in Canada increased 21.4 per cent year-over-year to $749,800 in the third quarter of 2021. Market activity slowed as a result of a chronic lack of inventory, a persisting challenge for housing markets from coast-to-coast, coupled with the seasonal summer slowdown.
“During the third quarter, the torrid pace of home price appreciation moderated as both demand and inventory waned, a typical summer market trend in a very atypical year. With easing pandemic restrictions, there was finally something to talk about other than real estate, and people began travelling and socializing again,” said Phil Soper, president and CEO of Royal LePage. “In addition, a year of relentless competition for too few properties drove some would-be purchasers to the sidelines as buyer fatigue set in. Yet their fundamental need or desire for a new home remains and we are seeing pent-up demand grow. We expect another unusually busy winter season building to a brisk 2022 spring market.”
The Royal LePage National House Price Composite is compiled from proprietary property data nationally and in 62 of the nation’s largest real estate markets. When broken out by housing type, the national median price of a single-family detached home rose 25.2 per cent year-over-year to $790,000, while the median price of a condominium increased 13.0 per cent year-over-year to $533,600. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian real estate valuation company.
Royal LePage is forecasting that the aggregate price of a home in Canada will increase 16.0 per cent to $771,500 in the fourth quarter of 2021, compared to the same quarter last year. This forecast is consistent with the company’s previous update in July, 2021.
“Looking back to the late spring of 2020, the Royal LePage benchmark value of a home was $580,000. The subsequent ‘Covid-catalyst’ which drove legions of Canadians to upgrade their living situations, has created a period of exceptional home price growth with real estate values on track to grow 33 per cent by year end,” concluded Soper.
Royal LePage Home Price Data:
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q3-2021
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q3-2021
[1]Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions and includes both resale and new build.
