Burlington’s real estate market was going strong at the beginning of March, riding the momentum that we were experiencing from the beginning of the year. We were seeing prices and sales increasing at even higher percentages than the month prior.
The COVID-19 Impact
In the first two weeks of March, our team’s sales were double what we saw in March 2019. But by about the third week, we felt some impact due to COVID-19.
Sales volume and inquiries started to slow as people began to socially distance and/or stay home.
When the provincial state of emergency was put into place days later, we saw sales levels decrease again, but they held steady at this new level. Many homes continued to see competition and over-asking sale prices throughout the second half of the month.
Real estate is an essential service; people always need to buy or sell homes. New listings are coming onto the market daily, but it’s in lower volumes compared to pre-COVID-19.
Burlington Market Activity
|Months of Inventory||1.2||1.5||-0.3|
|Median Days on Market||7.0||17.0||-10.0|
|Average Days on Market||11.8||26.5||-14.7|
Here’s a closer look at the recent market activity:
Sales activity is down 2%, likely because of the COVID-19 slowdown, but also because there’s such little inventory on the market. After all, it’s hard to sell homes without homes on the market.
The amount of new listings hitting the market continues to fall, decreasing 6% in March, as homes are not coming onto the market fast enough to replenish inventory. This number was also likely impacted by fewer new homes coming onto the market in the second half of March.
We anticipate the number of new listings hitting the market will be impacted more dramatically in April.
Active listings are down 20% in Burlington because homes have been selling quicker than they are coming onto the market.
The last two weeks of March saw a drop in new listings because of COVID-19, which also impacts that number.
Months of Inventory
We are currently seeing 1.2 months of inventory, an extremely low number as our hot market has continued to eat up inventory. We expect this number to fall again in April as fewer homes are likely to be on the market.
Burlington’s average home price is up both year-over-year and month-over-month.
Prices in the area have been steadily growing for the last few years and have increased 14% since 2019, with the average price rising from $738,823 to $843,229.
Average Days On Market
Burlington’s real estate is selling even faster than in the neighbouring Hamilton, with homes spending an average of 11.8 days on the market.
A Look At What’s To Come
The big question everyone is asking is if prices are coming down.
The short answer is no. In March, prices were up significantly. Sellers are not giving their homes away; we do not see desperation in the market. The market is strong minus the COVID-19 induced slowdown in sales.
Interest rates are providing a significant buffer to the market. While we expect sales to slow down during this time, we’ll get the full picture by the end of April.