Are you thinking about buying a home in the Greater Hamilton, Burlington or outlying areas? 2012 should be a good year for making a purchase as large as a house. How do we know? Economists tell us that low interest rates, relatively low unemployment, good employment prospects and business growth are good signs for the housing market, and they are all present for our local market. The Hamilton-Burlington real estate market will see modest growth supported by the expectation of continued good economic conditions.
First and foremost, interest rates are low. They are expected to remain low for this year and perhaps into the early part of next year. With five-year fixed mortgage rates available at under five per cent and six-month to four-year rates ranging well below that, the time seems right to be taking advantage of those low rates to buy a home.
Unemployment figures for the Hamilton and Burlington areas show our rate is about one per cent lower than the national average and compare even better to the Ontario average. Our unemployment rate is down half-a-percentage point from last year. We have seen new employers bringing successful and active business to this area recently and we are seeing local jobs maintained as well. Employment stability will increase consumer confidence in our local economy and more confidence in the housing market.
Our area is the only area in Southern Ontario expected to show economic growth through 2012. In their Housing Outlook Conference in November of last year, the Canada Mortgage and Housing Corporation (CMHC) cited strong jobs growth in our area as one of the reasons we could expect to see growth. The Hamilton area also scored well with the Real Estate Investment Network (REIN), which named Hamilton as the best place in Ontario and the third best in Canada in which to invest in real estate. By taking into account population growth, major employers, infrastructure and pending major transportation improvements, the REIN found Hamilton to be a good bet.
And it is not just our economy that makes 2012 a good time to purchase a home in our area.
First time buyers taking advantage of low interest rates will find additional incentives to purchase a home through the land transfer tax rebate for first time buyers and the Home Buyer’s Plan, which allows first-time buyers to withdraw up to $25,000 from their RRSPs to buy or build a home.
Affordability is always an issue, and in the Greater Hamilton, Burlington and outlying areas, we have a wide range of prices, properties and options for home buyers. The average house price in our market area at the end of 2011 was $313,430 – that is just the average. There are homes available for under $100,000 in Hamilton and $1 million homes as well. We have mansions to cottages, historic neighbourhoods to brand new subdivisions, acreages to leaseholds. There really is something for everyone in our area.
Our area provides the stability home buyers should be looking for when they are purchasing a home, and a wide range of housing options and opportunities. This could very well be the right year to buy a home in this area.
Cameron Nolan
President, 2012