December 1st, 2020 | Source RE/MAX
Hamilton Burlington housing market to favour sellers in 2021, prices expected to rise 7%
The Hamilton Burlington housing market is expected to continue in strong seller’s territory in 2021, which is being attributed to a spike in demand from move-over buyers from the Greater Toronto Area. In response to rising demand, prices have continued on an upward trajectory throughout 2020. The Hamilton Burlington housing market saw average residential price rise to $651,418 in 2020 (Jan. 1-Oct. 31) compared to $569,919 in 2019 (Jan. 1-Dec. 31). Looking ahead, continued demand is expected put upward pressure on prices, with an expected increase of 7% in average price to $697,017 across all property types.
Who’s driving the Hamilton Burlington housing market?
Demand for Hamilton Burlington real estate is being driven largely by migration from larger cities within the Greater Toronto Area, with buyers seeking homes with large lots, swimming pools, and neighbourhoods that have both suburban and urban aspects to them.
This has been a common trend across many Canadian housing markets as well as regions abroad, whereby homebuyers are opting for more square footage and green space outside of urban areas in the wake of COVID-19. Factors impacting this broader trend include the rise in remote work, the desire for more space and less density, as well as lower housing prices.
First-time homebuyers in Hamilton Burlington are typically young couples who are paying between $450,000 and $550,000, and most commonly purchasing townhomes.
The move-up market has recently seen a large increase in activity and demand, and is being propelled predominantly by families. More traditional home layouts, proximity to good schools, and nearby walkable open space are some of the main criteria for the move-up buyer since the start of COVID-19.
Hamilton Burlington’s luxury market has seen rising prices and low supply, and demand only expected to increase in 2021.
The most in-demand neighbourhoods projected for 2021 are Community Beach/Fifty Point, Meadowlands and Waterdown West.
Canadian housing market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighbourhoods,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.”