The newly amalgamated Cornerstone Association of REALTORS® reported 804 homes sold in the Hamilton-Burlington area in July, marking the third consecutive year with sales below long-term trends.
New listings rose compared to sales, resulting in the sales-to-new-listings ratio to ease to 42%. Active listings remained stable month-over-month, and months of inventory surged to over 4 months, something we haven’t seen since 2010.
The unadjusted benchmark price was $843,500, down about 1% over June and about 3% year-over-year.
According to Cornerstone spokesperson for Hamilton-Burlington, Nicolas von Bredow, the prospect of existing homeowners renewing their mortgages at a higher rate is likely driving the increase in supply, despite recent interest rate cuts.
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Let’s take a closer look at what happened in the local real estate market last month:
Hamilton Market Activity
| Variable | 2024 | Difference |
|---|---|---|
| Sales Activity | 491 | -2.0% |
| New Listings | 1,223 | 8.6% |
| Active Listings | 1,957 | 33.2% |
| Months of Inventory | 4.0 | 35.9% |
| Average Price | $785,971 | -6.0% |
| Median Price | $710,000 | -7.8% |
| Average Days on Market | 27.6 | 32.0% |
Burlington Market Activity
| Variable | 2024 | Difference |
|---|---|---|
| Sales Activity | 169 | -16.7% |
| New Listings | 385 | 17.0% |
| Active Listings | 588 | 64.2% |
| Months of Inventory | 3.5 | 97.3% |
| Average Price | $1,091,186 | -5.4% |
| Median Price | $946,000 | -14.0% |
| Average Days on Market | 27.4 | 40.7% |
The real estate market is always changing. Before buying or selling, make sure you’re up-to-date on the latest insights. Read our past market report blogs right here.
Sales Activity
There were 491 home sales in Hamilton in July, down 2% over the same period last year. Home sales in Burlington were down 16.7% with 169 sales reported.
New Listings
New listings in Hamilton were up 8.6% with 1,223 listings hitting the market in July. There were 385 new listings in Burlington last month, up 17% over last year.
Active Listings
Active listings, also known as inventory was up 33.2% in Hamilton with 1,957 active listings. Inventory in Burlington was up 64.2% with 588 active listings on the market.
Months of Inventory
Often used as a measure to determine market conditions, months of inventory reached new heights in July. In Hamilton, there were 4 months of inventory, up 35.9% over July 2023, while in Burlington, months of inventory was up about 97.3% with 3.5.
Average Days on Market
The average days on market in both Hamilton and Burlington were similar with 27.6 and 27.4 respectively. Hamilton days on market is up roughly 32% over last year and Burlington is up 40.7%.
Average Prices
Year-over-year prices softened in both Hamilton and Burlington last month. The average price in Hamilton was $785,971, down 6% over last year. The average price in Burlington was $1,091,186, down 5.4% over July 2023.
In the News
Global stock markets experienced a significant crash this month–the worst seen since Black Monday in 1987. While some markets recovered slightly over the next few days, many analysts are concerned that this is the beginning of the “great unwind.”
Veteran traders, however, are quick to say that while Black Monday was a scary hit to the markets, it was not a “harbinger of economic doom.” The latest events further the case for central banks to accelerate their plans to ease monetary policy.
The US jobs market report also supports a rate cut in September. The unemployment rate in the US was up for the fourth consecutive month. At 4.3%, the unemployment rate is by no means high, but what’s concerning is the rate at which it’s accelerating.
These latest events and data have traders in both the US and Canada betting on a “jumbo” rate cut in September. Many experts say an aggressive rate-cutting strategy is necessary to avoid recession.
A Look at What’s to Come
The summer is ending in a few weeks, as we approach Labour Day and the back-to-school season. Although sales in the region are down about 6% year-over-year, here at Michael St. Jean Realty, our sales are actually up about 13%.
As expected, the Bank of Canada cut rates again in July. Most economists expect rate cuts at every meeting for the remainder of the year, bringing Canada’s policy rate down to 3.5% by January and approximately 3% by next summer. The next meeting is in September, and by the time we send next month’s market report, rates could be even lower than they are now.
For every 1% the BOC cuts rates, buyers gain approximately 10% purchasing power, supposing prices stay the same–which is unlikely. As a result, buyers would be wise to get into the market now, before increased purchasing power drives up values. Sellers are experiencing more competition that is steadily increasing. Now would be a good time to list your home, before another wave of homes hit the fall market and put your sale in a weaker position.
Are you thinking about making a real estate move in the near future? Call us at 1-844-484-SOLD or email us here for everything you need to know about buying and selling in this market.
