Here’s the income you need to buy a home in Hamilton
Published April 18, 2023 at 2:53 pm
With a drop in home prices, affordability has improved slightly in Hamilton.
Compared to this time last year, home prices are down across Canada, and have decreased by about 20 per cent in the Hamilton and Burlington area. But still haven’t come down enough for many buyers.
A new report from Ratehub.ca, an online mortgage quotes company, calculated the minimum annual income required to buy an average home in Canada’s major cities based on March 2023 and March 2022 real estate data.
The report illustrates how changing mortgage rates, stress test rates and real estate prices are impacting the income needed to buy a home.
“While home prices are down significantly in the majority of the cities we looked at, the income required to purchase a home still remains inflated due to higher mortgage and stress test rates,” said James Laird, co-CEO of Ratehub.ca and president of CanWise mortgage lender.
The report found the average home price in Hamilton went from $1,060,000 in March 2022 to $835,800 in March 2023, a drop of $224,200. The annual income required is still high, at $165,940.
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While this income is much higher than what many residents make, it’s actually lower than last year. In March 2022 an income of $170,400 was needed to buy a Hamilton home.
“Hamilton was the only city to see home affordability improve year-over-year with $4,460 less income required due to a drop in average home price of $224,200, the largest decline of all the cities,” said Laird.
These figures are similar to a recent report from real estate broker Zoocasa.
Zoocasa found that with the average price of a Hamilton-Burlington area home is $831,300, buyers would need an annual income of $128,512 to purchase.
It also looked at the median income in the two neighbouring cities, and found it is only $103,820.
See the full report from Ratehub.ca here.
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