The Canadian Real Estate Association says housing prices in the Hamilton area have jumped by 70 per cent over the past five years, largely because of the westward exodus of GTA buyers.

A new CREA report says the price increase in the Hamilton-Burlington market, where the average home costs about $581,000, is the fourth highest in Canada.

“The decline in homeownership affordability caused by this year’s new mortgage stress-test remains very much in evidence,” said Gregory Klump, CREA’s chief economist. “Despite supportive economic and demographic fundamentals, national home sales have begun trending lower. While national home sales were anticipated to recover in the wake of a large drop in activity earlier this year due to the introduction of the stress-test, the rebound appears to have run its course.”

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The spike was even greater in Niagara Region, with a whopping 79 per cent rise over the same period — though the average cost of a home there is almost $200,000 less than in Hamilton.

Canadian Real Estate Association. Canadian Real Estate Association

Meanwhile, the CREA says the GTA saw an increase of 58.5 per cent over the same period and the national average was 43 per cent.

Among housing markets tracked by the index in the Greater Golden Horseshoe region, home prices were up from year-ago levels in Guelph (+9.3 per cent), the Niagara Region (+7.2 per cent), Hamilton-Burlington (+6.3 per cent), Oakville-Milton (+3.4 per cent) and the GTA (+2.7 per cent). Meanwhile, home prices in Barrie and District remain below year-ago levels (-2.1 per cent).

Apartment units posted the largest year-over-year price gains in November (+6 per cent), followed by townhouse units (+4 per cent).

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By comparison, the CREA says one-storey single-family homes posted a modest increase (+0.4 per cent) while two-storey single-family home prices held steady (+0.1 per cent).