Hamilton houses selling fast, but deals to be had: realtors

The Realtors Association of Hamilton-Burlington ispredicting the region will remain a sellers market this year and that house prices will continue to rise.

In its 2015 housing market forecast,the RAHB predicts there will be 20,000 residential listings, 14,500 residential sales and a 3.5 per cent rise in prices. Last year, the organizations predictions were almost spot on.

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"We have a crazy crystal ball here,"said RAHB President Donna Bacher.

Despite an average price above $400,000 and houses that can be sold the same night theyre listed, thereal estate market is still full of affordable starter homes, theassociation says.

But while prices are going up this years increase was actually 6.1 per cent Bacher says theres still an abundance of homes selling for around $200,000 or less in Hamilton Centre and Hamilton East, near the point where mortgage payments arent that different from paying rent.

"We have an abundance of homes in both of those areas which are below that $200,000 mark," Bacher said, noting historically, those areas have always been where Hamiltoniansfound their first homes.

Bacher said she doesnt put much stock in statistics that shows Hamilton has one of the largest gaps between average household income and average house price in Canada because of the skewed nature of the market.

Some 3,000 of the 13,346 houses that sold last year, for example, were in Burlington, one of the more expensive areas of the local market, Bacher said. Once you add in the high sale prices of homes in Flamborough and other suburbs (often over $500,000) you better understand whats driving the high average price.

Bacher said she understands how an economist "not knowing the type of market that we really represent" would be confused by the numbers.

"In actuality, Hamilton proper the city of Hamilton is very affordable,"she said.

Average home prices in Hamilton Centre and Hamilton East are about $200,000 and $225,000, respectively.

And when houses are priced right, those Hamilton houses move fast.

RAHB CEO Ross Godsoe said theres been a "huge shift"in how long homes are staying on the market from 44 to 39 days in 2014. Godsoe said in the downtown core, that window is even smaller, with many homes selling in 10-12 days.

Bacher said shes seen houses get listed on the local market at 10 p.m. and already have serious offers by the next morning. Often, she said, Hamilton homes dont ever make it to the Canada-wide Realtor.ca listings page because theyve already been sold at a local level.

That said, "its not like anything is selling,"Bacher said, so those looking to capitalize on the hot market still need to price their homes right.

Whats driving the growth?

Godsoe and Bacher said a series of factors is driving the real estate market in Hamilton, including low interest rates and low unemployment rates in the city. Theres also the many potential buyers being priced out of other GTA markets, primarily Toronto.

The RAHB doesnt have know exactly how many people from Toronto buying in Hamilton, but they estimate it's somewhere between 20 and 30 per cent.

"Its always been a constant flow,"Bacher said, but said as the price of a detached house in Toronto ticks closer to the seven-figure mark the influx of new buyers is more obvious.

Theres also the oft-cited development projects: the new GO station, intensification in the downtown core and other redevelopment plans set to get going in the coming years, like the citys redevelopment plans in areas like Barton and Ottawa Streets.