After losing bidding wars on two houses west of Gage Park this spring, the Pyke family had a sense of what it’s like buying a home these days in Canada’s hottest market.

In the end, the Toronto family snapped up an expansive home near Upper Ottawa and Fennell Avenue, with a move-in date set for August. And what a payoff: They’re now preparing to say goodbye to Toronto — and their mortgage.

“Our cost of living is going to drop by a third,” said Dave Pyke, 47, who works from home as an IT consultant alongside his wife, Gila, 37. “Besides, everyone tells me it’s a wonderful place to be.”

The Pykes’ new home is close to the French school where they plan to send their daughters, ages five and two. It’s also significantly bigger than their 1,600-square-foot house in Toronto’s Roncesvalles neighbourhood, and at $430,000, it fit their budget.

Dave says the family had targeted Gage Park after hearing good things from other friends who moved to Hamilton. Unfortunately, they weren’t the only Torontonians who got that memo. One house they wanted had seven competing bids. They lost even after raising their offer by $50,000.

“We ended up back on the Mountain because the (lower city had) too much competition,” he said, noting the whole transaction was still a breeze compared to what buyers face in the big smoke. “We couldn’t afford a bigger house in Toronto. To buy the equivalent house I’d be spending millions, even if I bought it in the depths of North York.” The Pykes’ experience appears representative of a larger trend. Some recent reports show the area to be on a serious upswing. Pyke family home at 18 Claude Ave., Toronto

. Pyke family's new home on Edgewood on the east mountain.

Barry Gray, The Hamilton Spectator This month, TD Economics declared Hamilton to be one of the country’s hottest housing markets (alongside Calgary) in its Quarterly Housing Report. Economist Diana Petramala cited the city’s low sales-to-listings ratio — meaning strong demand and lack of available supply. TD says home prices here have climbed 8 per cent since 2010. Data from the Realtors Association of Hamilton-Burlington (RAHB) seems to back TD’s assessment. The organization said earlier this month that the number of June sales was 16.7 per cent higher than last year at the same time. Calling Hamilton a “seller’s market,” it said the average sale price was 4.7 per cent higher than last June. “The market is very busy,” RAHB president Tim Mattioli told The Spec. “I picked the wrong year to be president. It’s a good year to be selling real estate.” House at 36 Oliver St in Hamilton (Centre), listing for $74,997. House at 53 Biggar Ave in Hamilton (Centre), listing for $89,900. House at 11 Keith St in Hamilton (Centre), listing for $94,900. House at 90 McAnulty Blvd in Hamilton (Centre), listing for $97,500. House at 58 Vansitmart Ave in Hamilton (Centre), listing for $99,900.



Listing source: MLS House at 125 Ridge Rd E. in Grimsby, listing for $7.95 million. House at 3448 Lakeshore Rd. in Burlington, listing for $7 million. House at 5431 Appleby Ln in Burlington, listing for $6.8 million. House at 140 Oaklands Park Crt., Burlington, listing for $5.998 million. House at 166 Park Rd S. in Grimsby, listing for $5.75 million. According to RAHB data from the past five years, Burlington has seen price growth outpacing Toronto; the former increasing by 34 per cent over five years compared to Toronto’s 32 per cent. But the rest of the city isn’t doing too shabbily either.

Based on Canadian Mortgage and Housing Corporation figures, the average national price increase over five years is just under 20 per cent. Almost all parts of Hamilton have exceeded that growth rate in the same time period. The only exception is Flamborough, which already boasts the area’s highest real estate prices — an average of $533,104 in 2013.

Even in downtown Hamilton, which has the lowest house prices in the region, there is still investment potential. The value of homes in the central lower city has increased by 26 per cent over the last five years, a bigger spike than most parts of town, including much-coveted Ancaster and Dundas.

People who feel priced out of Toronto appear to be playing a big part in driving the local market — but there’s no way to be sure because it’s not a stat the local real estate board keeps. As for bidding wars, Mattioli says they’re not the norm, but increasingly part of the real estate landscape.

There also seems to be more local young people buying their first homes in the city, he says, listing three factors as central to the recent boom.

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“The vitality of the city itself, that people can find work here; the proximity to Toronto and difference in price; and interest rates. In my opinion, that’s what’s driving things,” he said.

“People say all of our market is from the Toronto people. There are a large number of (them), but also people coming to Hamilton from other regions, and from within the city.”

After so much Hamilton hype, it’s becoming increasingly difficult to find that special underrated property and score a sweet deal, he said.

“Those days are gone,” said Mattioli. “Every neighbourhood has a buyer waiting to get in there now. If you’re in the low end, you have the flippers come in and try to grab them. If you’re in the upper end, there’s only so much product that’s out there.”

Diplomatic as he described the benefits of many parts of Hamilton, Mattioli did note that the remaining deals are probably in well-built, older homes between downtown and Gage Park, or abutting the city’s industrial areas, where not everyone is willing to live.

In other words, give up on Dundas now if you’re looking for a sweet score.

Mattoili himself grew up in one of the latest “it” neighbourhoods, the North End. His family ran a grocery on Bay Street for decades, abutting what is now Bayfront Park.

He says it’s rewarding to see the area on the radar but that he’s come to expect revitalization anywhere that attracts young buyers, who tend to see properties with fresh eyes and have energy to spruce up their lots.

But not everyone’s so keen to see young people rushing in droves to buy houses.

Former Halton-Peel MP Garth Turner, now a business commentator and financial adviser, says most people could stand to do the math before rushing into what, for many, is more of an emotional purchase than one that makes sense.

“What with financial illiteracy combined with all the house porn everywhere in our society, home ownership has turned into a bit of a cult,” he said. “Renting is a totally viable option right now as long as you take the money you’re saving from not owning and invest it, not just spending it going to Cuba.”

For those who insist, even the skeptical Turner sees value in downtown Hamilton, where urbanites can live in a core that is gradually gaining vitality.

But for existing residents, his advice is to take advantage of the influx and sell.

“If you’ve needed to sell, this is probably the best time in the last two decades,” Turner said. “There’s lots of places you can move that are 20 minutes away where the whole financial picture changes again.

“Maybe it’s time to move to Brantford.”

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