Are you considering buying a fixer-upper this year? If so, you need to get the complete picture before making one of the biggest investments of your life. 

The Canadian housing market is not the same as you’ve always known it to be. The Greater Toronto Area has experienced an all-time rise in real estate prices this past year due to skyrocketing demand and decreased supply. The surge in prices hasn’t been isolated to just the Toronto region but has quickly spread throughout Canada, including right here in Hamilton.

Many people expected the financial impact of the pandemic to cause a significant drop in real estate prices, but it had the opposite effect. Nevertheless, it’s impressive to note that the pandemic has been a tremendous driver in one of the strongest residential real estate markets in history.

Market prices are expected to remain at an all-time high
According to the latest Royal LePage House Price Survey, on average, Canada grew 17.1% year-on-year in the fourth quarter of 2021. Compared to the third quarter of last year, prices have soared by 3% this February.

On the other hand, Hamilton has witnessed a surge in prices by 25% year-on-year for March 2022. Currently, Hamilton is the hottest real estate market in Ontario, surpassing real estate prices in other cities like Toronto and Ottawa. The housing industry in Hamilton can continue to expect a further increase in prices throughout the year.

Demand to outpace supply
Throughout 2022, demand for condominiums, townhouses, and detached single-family homes in the GTA was incredibly high and is likely to continue into the rest of the year. As demand rises the supply of homes available, especially affordable homes will dwindle.

Should your first home be a fixer-upper?
Pros
Fixer-uppers in Hamilton can be cheaper than similar completed houses requiring minimal repairs. It’s a great way to save money and take advantage of the creative flexibility fixer-uppers provide to build your new home. If you don’t have hard limits on your budget and love to design, create and build, a fixer-upper is a project you will absolutely love! Fixer-uppers provide ample room to let your creativity flow and customize your home your way.

Another advantage of a fixer-upper, you pay a lot less in property taxes! Since taxes are based on the property’s purchase price and a fixer-upper would be almost 8% cheaper than a ready-to-move-in home in Hamilton, you will save a lot in taxes.

Cons
Buying a fixer-upper sure does appeal to the creative side but is it really worth it in the current Hamilton market? Flipping a fixer-upper can be a stressful ordeal, especially if you have little to no working knowledge about construction. You will need to hire a professional contractor to help with the entire remodeling. 

Even though fixer-uppers might seem cheaper than the completed resale homes at first, the number of renovations they demand can be scary. Unfortunately, you cannot anticipate all the upgrades your fixer-upper might require. The renovations can cost you more than what you would have spent on buying a completed home in the first place. Sometimes, surpassing your budget.

In this highly volatile market, you need someone experienced in the real estate industry to be by your side. Our highly passionate and knowledgeable real estate team always strives to ensure our clients are well-educated on the changes concerning them in the current housing industry. Our services in Hamilton are highly sought after by first-time homebuyers and experienced home buyers alike.

Contact us today
Intrigued to know more about the Hamilton market and whether a fixer-upper is the right choice for you? The de Denus team is delighted to guide you through all your questions. If you prefer to have a chat, call our office at 905-385-9200.