Introduction
In 2023 things have been quite a roller coaster ride over the last six months. So, let’s dive into the current situation, both the positives and negatives, and what investors should focus on.
Market Pricing and Trends
Compared to the peak of 2022, we’ve seen a decline in housing prices of about 15 to 20 percent. The market hit its lowest point around November-December 2022, when some incredible deals were up for grabs. Since then, things have started picking up, but prices are still relatively lower.
Despite the higher interest rates, buyers are still willing to pay more for properties due to the limited inventory. However, sellers are becoming increasingly concerned as they worry about further rate hikes. There’s uncertainty regarding whether rate cuts will be delayed, and this is impacting the market sentiment.
Investor Opportunities and Strategies
As an investor, you might be facing some unique challenges in the current market. Turnkey properties in good condition and priced appropriately are in high demand and are often going for asking price or even more. However, properties needing extensive renovations or larger projects are not as popular due to the uncertainties involved.
I’d like to point out that some of the best opportunities in Hamilton can be found in these larger projects. The city has become more zoning-friendly, allowing for up to four units on any residential lot. This means there’s potential for infill development and creating densely populated areas.
Rental Market Trends
The rental market in Hamilton is incredibly competitive, with a severe shortage of available properties. Rental rates have gone up by approximately 5 to 10 percent compared to the previous year, and the demand remains strong due to immigration and limited supply.
Zoning and Infill Opportunities
One positive aspect is that Hamilton’s zoning policies have become more supportive of infill development. This opens up possibilities for investors interested in larger projects, conversions, or commercial spaces.
Conclusion
So, to sum it up, the Hamilton real estate market in July 2023 presents both challenges and opportunities. While housing prices have declined since 2022, interest rates remain high, which affects affordability. Investors should look for opportunities in larger projects with favorable zoning and infill potential.
As the market continues to change, it’s essential to stay informed and work with experienced professionals. Whether you’re a first-time buyer, seasoned investor, or interested in infill opportunities, I’m here to help you navigate the complexities of the market and identify the right opportunities.