Thread: Housing market
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Old Posted Apr 26, 2017, 3:04 PM
thistleclub thistleclub is offline
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Torontonians behind a quarter of Hamilton housing sales: study
(Hamilton Spectator, Mark McNeil, Apr 26 2017)

Nearly one quarter of Hamilton area homes sold in the first three months of the year were purchased by buyers from the Greater Toronto Area, a new analysis of the local marketplace has found.

RE/MAX — which sells about 60 per cent of the houses in Hamilton-Burlington-Grimsby — crunched its numbers in its Spring Market Trends Report to find that 23 per cent of the realtors were from the Greater Toronto Area.

Conrad Zurini, broker of record for RE/MAX Escarpment Realty, says the company believes in almost all cases the realtor and the purchaser come from the same city. It's not possible to track the former address of buyers, but real estate transaction forms do contain the name of the selling realtor and the city he or she comes from.

Zurini says it's not a perfect science — and not something that has been widely done in the past — but it does give insight into a major trend in Hamilton that goes some distance to explain why it is so hard to find a home.

When a Toronto buyer purchases a Hamilton house, he says, it's a net loss to the local inventory, because that purchaser never puts a local home back into the market.

Moreover, Zurini said: "Increasingly, these are (Toronto) investors looking to purchase townhomes and small single-detached homes as rental properties (in Hamilton)."

He pointed to CMHC stats from last year that show a slight jump in the vacancy rate to 3.8 per cent from 3.4 per cent, compared to 2015.

He suggested a frenzy by Toronto buyers to purchase investment properties could be adding an inventory of new rental properties to the marketplace faster than demand.

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