So, you are thinking about moving to Hamilton, Ontario? And yet you are unsure if you can afford to move here? No need to worry, our team at Number 1 Van Lines came up with predictions regarding the housing market. Read this brief article to find out what are some real estate trends in Hamilton for the upcoming year.
Before we start, let’s get to know a little about Hamilton. With nicknames like “Steeltown” and “The Hammer” you might think this isn’t the right place for you, but there is a lot more to the city. Enchanting nature, wonderful parks, and affordable housing are just some reasons for moving to Hamilton. This port city is located between the Niagra escarpment and Lake Ontario, in a region known as the Golden Horseshoe, the area has a rich history and vibrant cultural scene. You can escape the everyday troubles with a visit to the Royal Botanical Garden or to the oldest trail in Canada, the so-called Bruce Trail. Now that you know what are some things Hamilton offers, let’s see what are the real estate predictions for the year 2022.
Real estate trends in Hamilton during the Covid-19 pandemic
The prices of real estate have skyrocketed during the Covid-19 pandemic. The pandemic caused major setbacks for millions of Canadian citizens. During this time, the Canadian housing market experiences a crisis. Many people across the country lost their jobs. Therefore, they weren’t able to afford the home they might have planned to get. Our first prediction is that the prices of real estate in Hamilton will continue to grow throughout the following year.
Because of the pandemic, the real estate in Canada fluctuated for months. Large cities saw a major loss. Residents that could work remotely, migrated from the urban areas to the suburbs. Since they were working from home, people were looking for properties that had more space. In 2021 people across Canada got the vaccine and everything slowly started going back to normal. The housing market in Hamilton is becoming stable again. People are back to their jobs and they can afford to relocate to a new home. So, if you are considering moving to Hamilton, now is the best time. Whether you are thinking of buying or renting, first look for reliable local movers Hamilton, so that you stay well informed on the current situation.
More residents will move to Hamilton
Toronto, the most populated city in Canada is only 45 minutes away from Hamilton. It is quite popular and expensive. That is why over the years many of its residents relocated to Hamilton. So far Hamilton was the less expensive option.But after the pandemic, many people moved from bigger cities which increased the prices of real estate. Our second prediction is that more people will relocate to Hamilton. As Hamilton’s population grows, the properties all across the city will become more expensive. Hence, if you are thinking about relocating, plan your move on time and look for reliable and trustworthy Hamilton movers. Since the current real estate trends in Hamilton are rapidly changing, it’s best that you hire a professional moving company that can make your relocation as stress-free as possible.
Mortgage interest rates will rise
The pandemic and the lockdown had a big effect on mortgages. Here are some of the major setbacks:
- Lenders tightened the requirements for mortgages.
- The rate of mortgage approvals fell because lenders couldn’t physically value properties due to social distancing rules.
- The uncertainty caused lenders to withdraw mortgage deals from the market, reducing the number of options available.
All the above-mentioned setbacks made it hard to get approved for a mortgage. First of all, when you are getting a mortgage you need to pass the stress test. Mortgages stress tests help lenders determine how much house you can afford. An objective of the stress test is to ensure that homebuyers can pay off their mortgage even if interest rates increase in the future or there are other adverse circumstances. As you can imagine, it was very difficult to pass the stress test during the previous year. People who were able to afford a new home, couldn’t pass the stress test because of the uncertainty that came with the Covid-19 pandemic. Higher interest rates make it impossible for clients to repay the hypothetical mortgage.
During the previous year, mortgage interest rates have fallen because of the pandemic. Since many people lost their jobs and had less money, mortgage rates were lower. Hopefully, soon the pandemic will end and the economy will go back to its normal state. Therefore, our third prediction is that mortgage interest rates will rise again. That’s another reason why right now this is the best time for you to find your new forever home in Hamilton.
Affordability will be an issue
All across the country access to affordable housing will remain an issue, even in the cities it previously wasn’t. During the pandemic, large cities like Toronto saw a major population loss in 2020. Therefore, there will be more and more people moving to smaller adjacent cities, like Hamilton. As we mentioned in the paragraph above Toronto is approximately 45 minutes away, so many of its citizens choose to move to Hamilton. Renting or buying a home in Hamilton was much less expensive, but after the pandemic, this might change. Our final prediction is that affordability will be an issue. We can’t say for sure when this horrendous pandemic will end, but when it does housing prices will continue to rise. Surely, we can expect an economic crisis that is going to generate even more volatility in the real estate trends in Hamilton.
The Covid-19 pandemic had a major impact on the housing market all across Canada. It also affected real estate trends in Hamilton. We hope this article helps you out with your move to Hamilton!