In January, we took a much-needed break, trading the bitter Canadian cold for the warm beaches of Mexico. The trip was a perfect mental reset—one where we (mostly) unplugged from our phones and relaxed away from the 24/7 demands of real estate. We played beach volleyball almost every day and, on one special day, took a catamaran tour to snorkel over the Mesoamerican Barrier Reef (also known as the Great Mayan Reef), teeming with vibrant marine life.
Back to Reality: A Busy Real Estate Market in Early 2025
Returning home, we jumped straight back into a busy market. Even while our high-school-aged kids prepared for and wrote their Semester 1 exams, we dove into showings, negotiations, and listings that were gaining momentum. As expected, the early spring market was already heating up.
However, uncertainty struck with the news of a potential trade war between Canada and the U.S.. The economic impact, coupled with concerns about a recession, started affecting buyer confidence—even though the Bank of Canada recently announced a 25-basis-point interest rate cut to stimulate the housing market. Despite these changes, buyers were left with more questions than answers.
One of the most common questions we’ve heard in recent weeks is:
“If the economy slows down, is real estate still a safe investment?”
Our answer? Yes. Real estate remains one of the best long-term investments, even in uncertain economic times. Here’s why.
Historical Real Estate Appreciation in Hamilton
If we look at real estate trends in Hamilton over the last 24 years, the numbers tell a compelling story.
- In 2000, the median home price in Hamilton was $135,000.
- The average annual inflation rate in Canada is around 2.4%, meaning that if home prices only followed inflation, that same home would have been worth $237,000 in 2024.
- However, real estate in Hamilton has historically appreciated at a rate of 7.35% per year, significantly outpacing inflation.
- As a result, that $135,000 home in 2000 was worth approximately $735,000 in 2024.
- Real estate appreciation has outperformed inflation at a ratio of 3:1.
This historical data shows that real estate has remained a strong and appreciating asset, even through economic downturns. While market fluctuations occur, home values have consistently trended upwards in the long run.
Hamilton Real Estate Market Update – January 2025
So, what’s happening right now in Hamilton’s housing market?
- Many new listings hit the market in January, increasing overall inventory.
- However, sales activity remained slow, leading to a slight decline in the median home price for the third consecutive month.
- This means buyers currently have more options, better negotiating power, and lower prices—making it an excellent time to enter the market.
As we mentioned last month, January is one of the best months to buy a home. With more selection and lower competition, buyers can see properties in their worst seasonal condition and make informed, objective decisions. This also gives us more leverage to negotiate the best price and terms for our clients.
Final Thoughts: Should You Buy Now?
We won’t pretend to be economists, but we know real estate. History has shown that real estate remains one of the safest long-term investments, even through economic shifts. Whether you’re a first-time buyer or an investor, we’re here to provide the insights, data, and expertise you need to make the right decision.
💬 Thinking about buying in Hamilton? Let’s chat about how we can help you navigate today’s market!
Here’s how the market performed in January in Hamilton.
The number of unit sales in January was:
- ⬆️ to 333 in Hamilton (up 5.4% from December, but down significantly from the average monthly unit sales of 484 in 2024)
The median home price in November was:
- ⬇️ Down 1.82% in Hamilton, to $715,000 (down for the third month in a row, from $728,250 in December)
Inventory:
- 🗓️ Hamilton’s inventory sits at 4.13 months or 126 days, up from 3.8 months or 115 days in December.
As always, if you or your family, friends, coworkers, or neighbours are thinking about making a move in real estate, we would love to go a head above for them.
We are never too busy for any of your referrals!