February 2021 was a record month for our team, starting off strong and ending even stronger. Buyers were out in full force, driving competition to whole new levels. That demand continued to propel real estate prices upwards, with single-family properties in the RAHB market area experiencing an astounding 33.5% increase in sales price in just one year.
Here’s a closer look at what happened in February:
Hamilton Market Activity
|Months of Inventory||0.7||1.3||-0.7|
|Median Days on Market||7.0||12.0||-5.0|
|Average Days on Market||13.3||26.2||-12.9|
Burlington Market Activity
|Months of Inventory||0.5||1.2||-0.7|
|Median Days on Market||7.0||9.0||-2.0|
|Average Days on Market||14.2||17.5||-3.2|
The RAHB reported 1,271 residential property sales for the month, up 54% from January and up 14.9% from February 2020.
As we mentioned above, this was an extremely active month for our team, and for the market as a whole. Not even the typically-slow winter season could stop buyers and sellers from moving up the real estate ladder.
New listings were on the rise last month, breaking a 10-year record for February and bringing much-needed inventory to the market. Month-over-month, the number of new listings increased 61.9% and 12.2% from last February.
Active listings increased by 28% throughout the RAHB region from January to February. These listing numbers are expected to stay strong over the next few months, bringing more homes onto the market, giving buyers further selection, and cooling the competition.
Months of Inventory
Despite the influx of listings coming to the market, both Hamilton and Burlington’s months of inventory were tight in February. Hamilton had 0.7 months of inventory, whereas Burlington had 0.5.
Average Days on Market
On average, homes in Hamilton spent 13.3 days on the market, down 12.9 days since February 2020. In Burlington, homes typically spent 14.2 days on the market, down 3.2 days year-over-year.
The market was still highly competitive in our region in February, as buyers continued to move up and seek out more affordable homes with room to grow. Our team experienced this demand first-hand, as our listings regularly sold in less than a week and for over asking.
From January 2021 to February 2021, the average price for a residential property in the Hamilton-Burlington area rose 7.7% to $848,719.
That’s a 29.5% increase in price from February 2020.
In Hamilton, the average home price rose 30% year-over-year from $590,404 to $769,774.
The average price for a home in Burlington officially surpassed the six-figure mark in February, rising 27% year-over-year from $843,231 to $1,067,867.
All property types — from apartment-style condos to semi-detached homes to detached homes — have increased in price in both Hamilton and Burlington. Single-family homes saw an especially impressive 33.5% increase in average sale price.
A Look at What’s to Come
We’re already seeing the effects of the spring market, even before the season has officially begun. Demand for real estate is still extremely high; listings are selling remarkably quickly and for well over the asking price.
The increase in new listings hitting the market will help level-out the imbalance of supply and demand, but buyers should still be prepared to experience tough competition.
As the weather improves, vaccine rollout increases, and restrictions loosen, it will be easier for sellers to showcase their home, increase exposure, and get a fantastic return on their investment.