Hamilton-Burlington Real Estate: 2025 Spotlight on Luxury

Demand for affordable luxury has played a role in the upswing in sales over $2.5 million in Burlington as move-over buyers from markets in Toronto and Oakville took advantage of the city’s blue-chip real estate in the first two months of the year. Eight properties, both on and off the Burlington waterfront, changed hands in January and February, up from four during the same period in 2024.

Luxury sales over $3 million in Oakville posted a 55-per-cent decline–with just 10 sales occurring in the first two months of the year, compared to the 22 reported in 2024. There have been rumours of several off-market sales in recent months that may have indirectly contributed to the slowdown in sales activity at the top end. Inventory levels, down marginally from year ago levels in the Hamilton area, may have also served to hamper luxury home-buying activity this year. Twenty high-end transactions occurred over the $1.5 million price point in January and February, off last year’s pace for the same period by 41 per cent.

Entrepreneurs are by far the most active segment in the luxury segment of the Hamilton-Burlington real estate market right now. Many are buyers from the 416 who find their dollars stretch further west of the city. Detached properties are by far the most popular housing type, although several large condominiums have sold over the $3 million price point in Burlington. Overall values in Burlington, Oakville, and Hamilton are holding relatively steady, and when rare listings come to market, there are purchasers ready and waiting to pull the trigger. The ‘sweet spot’ for sales in Oakville range from $4 million to $5 million; $3.5 million to $4.5 million in Burlington; and $2 million to $2.5 million in Hamilton.

Custom builds remain a popular option, with today’s buyers looking for older properties in the urban core that are ripe for redevelopment. The trend that once saw purchasers target 75-ft. lot frontages in East Oakville and Burlington has now shifted to smaller lot sizes hovering around 50 ft. These knock-down properties once complete include all the bells and whistles –with some opting to increase basement ceiling heights to accommodate golf simulators. The recent introduction of US tariffs may deter some buyers from moving forward with their plans, given that construction costs are expected to climb.

The market has seen a growing trend where would-be luxury buyers are choosing to rent properties—particularly in the condominium segment—before committing to buying.

Concerns over US tariffs, election jitters at both a provincial and federal level, and interest rates have contributed to softer activity so far this year. These concerns are particularly relevant in Hamilton and Oakville, both of which have manufacturing bases that ship to the US. Once greater stability has returned to the overall market, home-buying activity is expected to gain momentum, placing continued upward pressure on luxury values in the sought-after Oakville, Hamilton and Burlington real estate market.

Have questions, or are you ready to engage in the market? Connect with a RE/MAX agent today.