Hamilton Real Estate is Making National Headlines!!
Canada Mortgage and Housing Corp. (CMHC) which advises the federal government on housing, raised a red flag 3 months ago for the real estate market and it’s staying there! There is a lot of evidence for conditions that they consider problematic.
“Price acceleration in Vancouver, Victoria, Toronto and Hamilton indicates that home price growth may be driven by speculation as it is outpacing what economic fundamentals like migration, employment and income can support,” said Bob Dugan, chief economist with CMHC.
The CMHC is saying that price increases have to Hamilton and had warned previously of similar affects in the Vancouver area.
“There seems to be a fanning out of price pressure,” Dugan said.
RBC expressed concern of affordability in Toronto.
If you recall, the federal government did crack down on lending recently by introducing a stress test and qualifying borrowers at 4.64% (even though the posted rate and what they would pay would be much less). This was in an effort to slow the market.
According to CMHCs Housing Market Assessment that considers overheating, price acceleration, overvaluation and overbuilding, Hamilton made it on the list of cities in the “red zone”! Overvaluation and overbuilding are the most problematic areas.