Hamilton Condo Prices Appear to be Cooling Off, Even Though Sales Nearly Triple

Hamilton has had nearly triple the amount of condo sales transactions compared to the same time last year. Soaring real estate prices in the GTA have forced potential homebuyers to look at more affordable cities, leading to Hamilton’s steady ascent. But now, prices in one of the hottest real estate markets to emerge from the COVID-19 pandemic appear to be cooling off.

In March, Hamilton saw 75 condo sales, compared to just 28 the year prior. Aside from a small dip in January, transactions have steadily increased and we predict this trend to continue until the summer.

But still, prices levelling off in The Hammer

Despite those rising sales numbers, overall condo prices may be coming down in Hamilton. Robert Van Rhijn, Broker of Record at Strata.ca, points out that the price-per-square-foot is currently sitting at $501, down from February’s record-high of $535.

“Although appreciation values are up 5% over the past year, we’re noticing what appears to be a levelling-off since a pricing surge that kicked off in December. A lot of this is likely due to a rise in inventory, forcing sellers to bring down their asking price so they can stay competitive.”

Van Rhijn is referring to last August, when condo inventory in Hamilton hit its peak. That month alone, 152 units were put up for sale. After that, the number of available listings went on a steady decline throughout the winter. But with the start of spring, 144 units hit the market in March; closer to those inventory levels noted last summer.

Some pockets still hotter than others

Downtown Hamilton remains one of the more expensive neighbourhoods with condos selling at about $567 per-square-foot, considerably higher than the city average of $501 mentioned earlier. But that’s not to be outdone by the community of Lakeshore-Stoney Creek, which has an average price-per-square-foot of $662. In the past 30 days, the typical selling price of a condo there was $618,000.

Although some pockets remain hotter than others, the communities of West Mountain and Red Hill-Vincent-Gershome still remain most affordable. The average sale price in these two areas are considerably lower at $538,000 and $522,000 respectively. And it’s not hard to still find relatively affordable properties here:

66 Summercrest Drive, Unit 2

40 Harrisford Street, Unit 405

250 Magnolia Drive, Unit 9

Van Rhijn thinks condos generally perform well in Hamilton because it's one of the only housing segments that still remains within reach, especially for young families and first-time homebuyers.

“For those priced out of the Toronto market, this recent cooling of condo prices is encouraging. Not only do you get more value per square foot in Hamilton, but units here tend to be more spacious. Plus you’re not competing with the density found in other urban areas, so it really lends itself to a different quality of life.”

For journalists: If you’d like more information on this report or would like to receive future news releases, please send your requests to media(at)strata.ca.