With the first month of 2022 behind us, we can get a clearer picture of what’s in store for the real estate market this year. The Realtors® Association of Hamilton-Burlington (RAHB) reported 718 sales through the MLS® in the region. This number is down 11% over December 2021, and 13.5% lower year-over-year.
New listings in the region were actually up by about 40% month-over-month, but diminished supply still puts us down 11% over January 2021.
Over the next month or so, we expect to see activity increase as we head into the busy Spring Market, traditionally one of the busiest times for real estate sales. However, the past two years have been anything but traditional.
Let’s take a closer look at what happened in the local real estate market last month:
Hamilton Market Activity
| Variable | 2022 | 2021 | Difference |
|---|---|---|---|
| Sales Activity | 404 | 486 | -16.9 |
| Dollar Volume | $394,474,854 | $350,492,311 | 12.5% |
| New Listings | 535 | 617 | -13.3% |
| Active Listings | 243 | 423 | -42.6% |
| Months of Inventory | 0.6 | 0.9 | -0.3 |
| Average Price | $976,423 | $721,178 | 35.4% |
| Median Price | $888,000 | $668,000 | 32.9% |
| Median Days on Market | 7.0 | 8.0 | -1.0 |
| Average Days on Market | 15.4 | 20.1 | -4.7 |
Burlington Market Activity
| Variable | 2022 | 2021 | Difference |
|---|---|---|---|
| Sales Activity | 147 | 188 | -21.8% |
| Dollar Volume | $201,292,534 | $183,485,963 | 9.7% |
| New Listings | 187 | 215 | -13.0% |
| Active Listings | 70 | 144 | -51.4% |
| Months of Inventory | 0.5 | 0.8 | -0.3 |
| Average Price | $1,369,337 | $975,989 | 40.3% |
| Median Price | $1,200,000 | $877,500 | 36.8% |
| Median Days on Market | 6.0 | 7.0 | -1.0 |
| Average Days on Market | 12.0 | 20.9 | -8.9 |
Sales Activity
RAHB reported 718 sales through the MLS® for Hamilton and Burlington in January 2022. This is down 11% over December 2021 and down 13.5% year-over-year.
Read all about Burlington real estate right here.
New Listings
Although new listings were up last month by 40.9% over December, inventory is still significantly lower than in years past. Over January 2021, new listings were down by 11%. It is expected to see some more listings on the market in the coming months as we enter the Spring Market.
Active Listings
Active listings in Hamilton were down 42.6% from 423 in January 2021 to 243 in 2022. In Burlington, there were even fewer active listings. The number is down 51.4% from 144 in January 2021 to 70 this past January. These numbers speak to the general outlook for most of Canada right now. Inventory is incredibly low across the country.
Months of Inventory
Months of inventory in Hamilton is down 0.3 from 0.9 in 2021 to 0.6 this year. In Burlington, months of inventory saw a similar drop from 0.8 in January 2021 to 0.5 in 2022.
Average Days on Market
With inventory levels at record-lows. We are also seeing properties sell faster than ever before. In 2021, the average days on market in Hamilton was 20.1. In January 2022, that number has decreased to 15.4 days on market. In Burlington, we see a similar trend, with the average days on market in 2021 sitting at 20.9 and dropping to 12 in 2022.
Average Prices
As the average days on market go down, the average prices of homes for sale in Hamilton and Burlington are going way up. RAHB is reporting for the first time ever that the average home price in the region has gone over the $1 million mark. In Hamilton, prices rose 35.4%. The average home price in January 2021 was $721,178. This month it was $976,423. Homes for sale in Burlington are a different story. The average price was $975,989 in January 2021 and $1,369,337 in January 2022. That’s an increase of 40% year-over-year.
Learn more about real estate in Hamilton right here.
In the News
The Canadian Real Estate Association is reporting that at the end of December, we saw the lowest home inventory for at least the past 25 years. There was a “buying frenzy” brought on by the pandemic with Canadian buyers purchasing a record 667,000 homes throughout 2021. As a result, at the end of the year, there were about 86,000 homes left on the market–the lowest number we’ve seen in a long time.
In a surprise move, the Bank Of Canada decided to hold the benchmark interest rate at the end of January. Signaling no interest rate hikes until at least the spring. This came as a surprise to many economists and experts who were predicting an increase coming soon to help combat record levels of inflation.
However, Bank of Canada Governor Tiff Macklem says that concern over the Omicron wave played a significant role in the decision not to raise rates and that consumers can expect rate hikes after the latest wave.
2021 was an election year. Read about what the Liberal Party housing plan included for buyers and renters here.
A Look at What’s to Come
With inventory remaining lower-than-usual, buyers can expect significant competition in the upcoming season. Although we should see inventory increase for the Spring Market, they will not reach the numbers we have seen in the past.
For sellers, this is a great time to sell. Sellers can expect to get top-dollar for a well-prepared home and most properties are going into multiple offer situations.
However, some regulators are predicting that the housing market may cool down slightly with declining prices once the interest rates start to rise again. Either way, whether you are planning to buy or sell in 2022, your best idea is to work with an experienced real estate team that knows how to navigate a challenging and ever-changing market.
In this market, expert advice makes all the difference. If you have a question about buying or selling your home, call us at 1-844-484-SOLD or email us here.
