Photo: James Bombales
It’s no surprise that Canada is home to some of the world’s hottest housing markets. But one city has seen a huge surge in prices over the past year — and it’s not Toronto.
According to the Knight Frank Global Residential Cities Index — an index that tracks the price growth of the world’s most expensive housing markets — Hamilton saw a 11.3 per cent year-over-year jump in prices last year, placing it at number 17.
It’s the latest indication that the housing market is poised for huge growth in coming year.
Housing Market News Alerts
Sign up now for news alerts on the Canadian housing market
“Limited inventory was reported in Hamilton-Burlington…as first-time buyers, especially those interested in single detached homes, ventured outside the GTA,” reads a recent report from RE/MAX INTEGRA. “At one point, one in every four buyers in Hamilton-Burlington was from the GTA.”
According to RE/MAX, Toronto buyers looking for more affordable options have been making their way over to Hamilton, causing home prices in the area to more than double in the last 10 years.
But Hamilton isn’t the only Canadian city to top the index. Vancouver jumped up to the fourth spot this year, as its prices ballooned upwards in the second half of 2017.
“Vancouver rebounded from 21st to fourth place this quarter as supply shortages reignited price growth,” reads the Knight Frank report. “The 15 per cent foreign buyer tax has influenced luxury prices more than the mainstream market.”
However, it does predict that an expansion of the foreign buyer tax, announced last month as part of the province’s budget, could cool things down in 2018.
“With a raft of new cooling measures announced…the city may yet see its rate of growth soften,” reads the report.
As for Toronto, the infamously expensive city only made it to number 29 on the list, with year-over-year price growth of 9 per cent.