Hamilton among 7 Canadian cities seeing drop in home prices: report
CBC
Upinder Dhillon is ready to buy a house.
The small business owner and aromatherapist lives in a rented home with her husband and son in Oakville, Ont., and she's been scanning listings for a single-storey house near a body of water — and preferably within a short drive to Mohawk College, where her son begins a trades program in September.
"Hamilton is my first choice," said Dhillon. "It's more affordable than Oakville or Burlington. And honestly, it has everything — trails, the waterfront, shopping."
Dhillon's timing may be just right. New data from Ratehub.ca shows Hamilton led the country in improved "mortgage affordability" in April, with the average price falling nearly $10,000 to $801,400. That means a buyer now needs $1,800 less in income to qualify for a mortgage on a typical home in the city, compared to what was previously needed, according to Ratehub.ca.
Hamilton was one of seven major cities in Canada, out of 13, that saw improvements in mortgage affordability last month, according to the data, released on May 22.
"Since mortgage rates remained unchanged [in April], home prices were what impacted home affordability in each of the cities," said Penelope Graham, a mortgage expert at Ratehub.ca, in a news release.
According to Graham, sluggish home sales, an uptick in supply and buyer caution are helping push prices downward, particularly in Greater Golden Horseshoe markets like Hamilton and Toronto. Other cities that saw housing prices — and the amount of income needed to afford a mortgage — drop last month include Vancouver, Fredericton and St. John's.
Meanwhile, prices went up in some cities, such as Regina, Montreal and Victoria.
Dhillon, who plans to buy largely in cash using proceeds from a property sale overseas, said a dip in price could be key for her and her family.
"Interest rates are still high, and qualifying for a mortgage is tough when you run a small business," she said. "But this feels like a good time to buy."
Mortgage broker Emily Miszk, based in Port Credit west of Toronto, said the change comes down to basic math.
"If home prices are coming down, clients need a smaller mortgage — which means they need less income to qualify," she said.
But she emphasized the Ratehub report reflects a shift in the cost but not a change in who can quality for a mortgage.
Conrad Zurini, a broker at RE/MAX Escarpment Realty in Stoney Creek, said he's already seeing a shift.
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