According to the Realtors® Association of Hamilton-Burlington (RAHB) there were 765 sales across the region, down 37% over last year’s peak of the market. New listings were also down in the area by about 27% year-over-year. Despite the unadjusted benchmark prices being down year-over-year, we are starting to see month-over-month increases, that could suggest prices beginning to stabilize after the highs and lows we saw during the pandemic.
RAHB President, Lou Piriano says that demand in the lower end of the market (homes priced below $800,000 is increasing as higher interest rates are impacting affordability for many buyers. Although, he does say that buyers have more options now compared to one year ago when market conditions were unfavourable.
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Let’s take a closer look at what happened in the local real estate market last month:
Hamilton Market Activity
|Months of Inventory||2.1||280.5%|
|Average Days on Market||31.2||319.7%|
Burlington Market Activity
|Months of Inventory||1.8||264.5%|
|Average Days on Market||24.9||231.4%|
There were 464 sales reported in Hamilton in February 2023, down 40.1% year-over-year. In Burlington, there were 164 sales reported, down 38.1% over the same period last year.
Looking for more real estate trends? Read our past market updates right here.
New listings across the region were down last month. In Hamilton, there were 736 new listings (down 30.3%) and in Burlington, there were 246 new listings, which is down 30.5% over February 2022.
Active listings, otherwise known as “inventory” was up last month. In Hamilton, there were 990 active listings, up 128.1% over last year. Burlington is a similar story with 300 active listings in February, up 125.6% year-over-year.
Months of Inventory
Months of inventory, also called months of supply was up in both cities last month. In Hamilton, months of supply was at 2.1, which is up 280.5% over last year. Burlington months of supply was at 1.8, which is 264.5% higher than February 2022.
Average Days on Market
With fewer sales and increased inventory, it’s not surprising to see the average days on market up over last year. In Hamilton, homes stayed on the market for 31.2 days on average, up 319.7% over the peak of the market last year. Burlington’s average days on market were slightly lower than Hamilton, but still up 231.4% over last year with 24.9 days on market, on average.
Residential prices are still down year-over-year, however it is interesting to note that prices appear to have increased month-over-month. In Hamilton, the average residential price was $800,584, down 21.6% year-over-year. Burlington average residential prices were down 23.4% at $1,064,513.
In the News
The biggest piece of news coming out recently was the Bank of Canada’s decision to hold interest rates at their latest policy meeting. They hinted at this decision in January, and “made good” on their promise, holding the benchmark overnight interest rate at 4.5%. This is at odds with what the US Federal Reserve is signaling. Our friends south of the border have hinted at even more rate hikes to help combat even stickier inflation.
However, the BoC says its decision to hold rates for now comes as the Canadian economy seems to progress in 2023 as expected. The BoC is even predicting that our hot inflation rates might cool to as low as 3% by mid-year.
Many real estate experts are also saying that this latest hold on rates could inspire buyers who were previously watching the market on the sidelines to re-enter the market, potentially neutralizing the rental market in the process. Some are even predicting that reduced demand in the rental market could cause rental prices to stabilize in the latter half of the year.
When it comes to home prices and the general outlook on the Canadian economy, new data from Bloomberg Nanos Canadian Confidence Index shows that Canadians, in general, are gaining confidence in the market, and the majority of those polled say they expect to see home prices continue to rise over the next 6 months.
A Look at What’s to Come
Although no one can predict with 100% certainty that the BoC will not raise rates again at the next several policy meetings, the latest announcement comes as welcome relief to buyers looking to purchase this year.
Affordability is still a major issue, as high rates are compounded by still-high prices. However, a pause on rate hikes could offer the perfect opportunity to get into the market when things are beginning to stabilize.
Things are also looking up for sellers, as more buyers re-enter the market, demand for inventory will rise. A stable market is good news for all parties since most sellers eventually will become buyers once their properties sell.
Are you thinking about buying a new home or selling your property in the near future? Call us at 1-844-484-SOLD or email us here to get started.