Looking back on June, one thing is certain: The “new normal” of our real estate market isn’t so new after all!
The market is back in full swing, bringing us pre-COVID results that outpace what we typically see in the summer. Homes are selling at record-breaking speeds and prices are increasing just as quickly.
In more good news, sales continue to climb month-over-month and are only down a marginal amount when compared to June 2019.
Here’s a closer look at what happened in June:
Hamilton Market Activity
|Months of Inventory||1.2||1.6||-0.4|
|Median Days on Market||11.0||16.0||-5.0|
|Average Days on Market||21.6||25.6||-4.0|
Burlington Market Activity
|Months of Inventory||1.1||1.6||-0.5|
|Median Days on Market||11.0||17.0||-6.0|
|Average Days on Market||18.8||25.5||-6.7|
Across the RAHB region, sales are up 53% over May as the market’s momentum continues to grow.
Compared to June of 2019, activity is only down 0.2%. That is in stark contrast to May’s 42.2% year-over-year decrease.
More broadly, RAHB reported that 1,304 sales of residential properties located within the market area were processed through the MLS® in June.
Hamilton’s new listings were down 10% compared to June of 2019, whereas Burlington saw a 7% increase.
Overall, market sentiment is thriving as more homes hit the market and more buyers adjust to revamped buying and selling processes.
That said, the state of emergency still has some lingering effects. The number of active listings in Hamilton, year-over-year, fell 26% and 25% in Burlington.
Months of Inventory
Currently, Hamilton has 1.2 months of inventory and Burlington has 1.1, which continues the dramatic shift from May’s 1.7 and 1.8 months, and April’s 2.9 and 3.0 months, respectively.
Activity continues to heat up and gives credence to the belief that we are in an even stronger seller’s market. A return to normal before COVID-19.
Average Days on Market
Across the area, homes continue to sell at a rapid clip (even compared to 2019). The average Hamilton home spent 21.6 days on the market, whereas in Burlington the average hovered around 18.8.
Considering the entire RAHB region, the average price for a residential property stood at $675,223, which is up 13.7% from June 2019. That’s a 3% increase from May.
In Hamilton, this amounted to the average home price rising 14%, year-over-year, to $619,049.
In Burlington, there was a 12% increase in the average price of a home, year-over-year, to $872,398.
A Look at What’s to Come
As we have consistently mentioned throughout this pandemic, it is crucial to take an overall look at the market. The fundamentals have remained strong, and now we are seeing the benefits of that strong foundation.
As the province continues to reopen, activity and prices continue to rise even compared to this time last year. Positive sentiment is growing with minimal pullback, which will likely continue into the summer months.
COVID-19 has dramatically changed the way real estate is done but has not had a profound effect on the market itself. Thanks to safety measures in place, life (and the market) are continuing a return to normalcy.