Housing resilient in Q1, ‘heated’ spring expected: Re/Max survey

MISSISSAUGA, ONT. The real estate market in Hamilton-Burlington is in for a busy spring, according to a major Canadian real estate organization.

Re/Max says the local market is among 12 of 15 Canadian centres that reported sales activity in January and February that was ahead of last year’s levels.

More than half of the cities reported double-digit increases, “with the strong demand and diminished supply setting the stage for a heated spring 2012.”

Re/Max said low interest rates, coupled with strong consumer confidence levels and a mild winter played a significant role in the upswing, ushering in an early start to the spring market.

In Hamilton-Burlington, sales were up close to 7 per cent (1,855 units in 2012 versus 1,736 in 2011). Average home prices were up more than 5 per cent, from $329,722 to $347,660.

According to Re/Max, local sales were driven by a surge in east Hamilton and Dundas and by Toronto residents buying in Burlington. The realty reported bidding wars in eastern Burlington in the $350,000 to $550,000 price range and in entry-level ($230,000 to $275,000) properties in Hamilton.

“Hamilton offers up some of the country’s most affordable inventory — and for many, the cost of owning is less than the cost of renting,” the report says.

As well, Hamilton-Burlington sales in the million-dollar category are up over last year.

Industry watchers who are closely monitoring home prices have suggested Canada’s real estate market, which has been fuelled by low mortgage rates since the recession, will soon cool off, but many predict a so-called “soft landing.”

Others have called for a more drastic decline in sales and home prices, saying that the market is overheated, creating a housing bubble that could soon burst.

In terms of sales volumes, the best performing markets heading into the traditionally busy spring period were Halifax-Dartmouth, up 35 per cent, Saskatoon (21 per cent), Saint John, N.B., (20 per cent), Regina (16 per cent), St. John’s (12.5 per cent), Greater Toronto Area (12 per cent) London-St. Thomas (11 per cent) and Edmonton (11 per cent).