Which Part of Burlington is the Most Coveted for Luxury Sales?
Momentum is expected to build in the coming months “as disenchanted buyers from the Greater Toronto Area continue to seek more bang for their buck,” in Burlington and Hamilton, according to a recent report.
The 2018 Re/Max Luxury Property Report breaks down what's happening in across both cities.
Hamilton-Burlington's luxury housing market reported its best year on record in 2017, with more than 900 homes changing hands over the $1 million price point.
Sales are off to a slower start this year.
In the first two months of 2018 there were 59 homes over $1 million sold, versus 133 sales year over year.
Sixty-eight per cent of upscale purchasers “chose to live in Burlington with the lion's share of sales occurring in the southeast quadrant,” the report reads.
Closer to Hamilton, “Ancaster also remains a perennial favourite with buyers, representing almost 17 per cent of total upper-end sales.”
The vast majority of luxury home sales have taken place in the $1 million to $2 million price range this year.
“Several properties have moved in multiple offers, although that is usually the exception rather than the rule,” the report reads.
New listings tend to move quickly, with many selling within the first 30 days on market.
The highest-priced sale in 2018 occurred in Ancasterat $2.1 million.
The most expensive property currently listed for sale is a country estate in Burlington with a price tag of $7.88 million.
While buyers in Hamilton-Burlington “had a wait-and-see attitude during the first six weeks of 2018, the market is picking up,” the report reads.
“Agents' phones are ringing and more showings have been booked, with many buyers considering larger homes or more desirable areas.”
A good supply of upscale product is available for sale, with more than 250 homes currently listed over the $1 million price point.
Homebuyers looking in the $800,000 to $999,000 price range are also likely to expand their budget up to $1.2 million.
“The region also has a number of areas that are transitioning into luxury enclaves with prices breaking through the $1 million threshold: Bungalows, side-splits, and back-splits on generous 70- to 100-ft. lots in the $700,000 to $900,000range are sought-after by savvy buyers in Hamilton-Burlington, with plans to demolish and make way for custom-builds ranging from 3,500 to 4,000 sq. ft.”
The Burlington waterfront is also changing with the construction of several new luxury condominium developments.
Most are sold out with completion dates scheduled for 2019 and 2020.
“Demand in this segment of the market has soared in recent years, given limited inventory. Not surprisingly, the condominium lifestyle resonates with empty nesters and retirees living in the area,” reads the report.
Moving forward, lending restrictions and stress tests may have an impact on buyers in Toronto, but Hamilton-Burlington continues to offer an affordable alternative, findings show.
The $1 million-plus price point “represents tremendous value when compared to similar properties in the GTA.”
To illustrate this point, upscale homes in southeast Burlington can cost as much as 20 to 30 per cent less than those in neighbouring Oakville, and a fraction of the cost for similar properties in Toronto proper.
“Given the inviting price point, Hamilton-Burlington is expected to continue to experience strong growth in luxury sales,” the report reads.