April 2021 was the busiest April on record for the Michael St. Jean Realty team. Real estate sales and prices increased year-over-year at levels not seen before. Prices of homes in the Hamilton-Burlington area were up an astounding 42% from April 2020, but appeared to soften month-over-month as lockdowns took effect.
Home sales moderated slightly from March, but we saw an increase in inventory. Despite some of the short-term impacts of the lockdown, market activity in April was still highly elevated.
Here’s a closer look at what happened in April:
Hamilton Market Activity
|Months of Inventory||0.7||3.1||-2.4|
|Median Days on Market||8.0||18.0||-10.0|
|Average Days on Market||11.1||25.1||-14.0|
Burlington Market Activity
|Months of Inventory||0.6||3.1||-2.5|
|Median Days on Market||7.0||16.5||-9.5|
|Average Days on Market||12.3||21.3||-9.0|
The RAHB reported 1,906 residential property sales for the month of April. This is an 8% drop from last month, but an incredible 245% increase compared to April 2020.
As mentioned, this was a record month for our team as we’re still experiencing an incredibly active market.
The number of new listings decreased 3% month-over-month, but still represented a 191% increase from April 2020.
The latest wave of pandemic lockdowns caused sellers to temporarily hold off on putting their homes on the market. We expect to see an increase in new listings as restrictions loosen.
Active listings increased considerably as detached home active listings climbed 32% month-over-month. Townhome active listings also grew by 21% in April.
The increase in inventory is helping to bring a slight balance to the market and provide more options to buyers, though market activity is still highly elevated.
Months of Inventory
Both Hamilton and Burlington experienced tight months of inventory. Despite the increase of available listings, Hamilton had 0.7 months of inventory while Burlington had 0.6.
Average Days on Market
Homes in Hamilton spent an average of 11.1 days on the market in April, down 14 days compared to April 2020. Burlington homes spent 12.3 days on the market, down 9 days from the same month last year.
From March 2021 to April 2021, the average home price in the Hamilton-Burlington area decreased slightly by 2% to $855,455. Year-over-year, the average home price increased by 39%.
The average price of homes in Hamilton increased 42% year-over-year to $786,737 from $555,543.
In Burlington, the average home price rose to $1,058,992, up 31% from $807,927 in April 2020.
There was a significant price increase year-over-year across property types in the region; however, increases in the price of homes slowed slightly month-over-month. This is to be expected after such record growth in the first quarter. Prices will likely continue to increase at a more stable rate.
A Look at What’s to Come
Heading into May we expect robust market activity to continue with a strong possibility of another record month. Changes including increased vaccination rates, declining Covid-19 cases, upcoming re-opening, and a generally more positive mood should positively fuel the market.
According to the Canada Mortgage and Housing Corporation’s latest report, prices of homes are expected to continue increasing through 2021, though at a more sustainable rate.