The Realtors® Association of Hamilton-Burlington (RAHB) reported 1,115 sales in June, which is about 182 units fewer than in May 2023. Although sales are down month-over-month, RAHB reports that sales are actually up 19% year-over-year.
Inventory in the area saw some moderate gains this month, but new listings are still about 20% lower than expected from the long-term trends for June. RAHB president, Nicolas von Bredow said that low inventory has been a challenge for several months, but that new listings could slowly increase as “buyers pause to evaluate the impacts of recent interest rate adjustments.”
The unadjusted benchmark price for the area in June was $873,100. This is down 0.45% over the previous month and represents the first time in 5 consecutive months that we’ve seen a price decline. However, the decrease is minimal and prices remain significantly higher than prices seen before the pandemic.
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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 | 2023 | Difference |
|---|---|---|
| Sales Activity | 649 | 6.2% |
| New Listings | 1,173 | -22.1% |
| Active Listings | 1,200 | -23.7% |
| Months of Inventory | 1.8 | -28.1% |
| Average Price | $831,540 | -3.3% |
| Median Price | $770,000 | -0.9% |
| Average Days on Market | 19.3 | 20.5% |
Burlington Market Activity
| Variable | 2023 | Difference |
|---|---|---|
| Sales Activity | 273 | 47.6% |
| New Listings | 431 | -16.5% |
| Active Listings | 335 | -30.9% |
| Months of Inventory | 1.2 | -53.2% |
| Average Price | $1,156,527 | -8.8% |
| Median Price | $1,050,000 | 2.9% |
| Average Days on Market | 16.2 | 10.5% |
Before buying or selling, make sure you’re fully familiar with the local real estate market. You can read our past Hamilton-Burlington real estate market report updates right here.
Sales Activity
Sales in Hamilton were up 6.2% over last year, with 649 sales reported through the MLS®. Burlington sales were up 47.6% over 2022 with 273 units sold.
New Listings
New listings in Hamilton were down 22.1% year-over-year with 1,173 units. There were 431 new listings in Burlington in June, down 16.5% over June 2022.
Active Listings
Active listings, also known as “inventory” was down 23.7% in Hamilton last month with 1,200 active listings. Burlington inventory was also down last month with 335 active listings, which is down 30.9% year-over-year.
Months of Inventory
Months of inventory, or months of supply, is the amount of time it would take to sell all the current active listings on the market, supposing that no new listings enter the market. It’s a measure that will typically indicate the state of the market. For example, most experts agree that anything below 3 months of inventory could be considered a “Seller’s Market.” In Hamilton, months of supply was at 1.8, which is down 28.1% over last year. Months of supply in Burlington was 1.2, down 53.2% over last year.
Average Days on Market
The average days on the market in both cities were up this month. In Hamilton, the average DOM was 19.3, up 20.5% over June 2022. In Burlington, the average days on the market were 16.2, up 10.5% over last year.
Average Prices
After five consecutive months of price increases, prices in the area saw a slight month-over-month dip of 0.45% in June. In Hamilton, the residential average price was $831,540, down 3.3% over last year. The average residential price in Burlington was down 8.8% over last year with $1,156,527.
In the News
A summary of last month’s Bank of Canada policy meeting showed that policymakers initially deliberated holding interest rates steady in June before ultimately deciding to hike rates. While the country has experienced “robust economic growth,” officials did note that the economy is still in excess and it would be preferable to take action now while assessing new developments.
Economists are now predicting that the Bank of Canada will raise interest rates by another 0.25% before ending its hiking cycle. Experts are betting on a new rate hike in the third quarter, bringing the policy rate to 5%, the highest it has been since 2001. However, this news still supports the belief that the economy is headed for a “soft landing.” There’s a 50/50 chance that rates will go up by 25 basis points at the next policy meeting in July.
Although the news cycle leaves much to be desired with rising interest rates and wildfires making headlines, economists around the world are now taking note of something positive coming out of Canada–the economy. Experts agree that Canada’s unique approach to immigration and diversified economy should be applauded.
With unemployment at an all-time low, Bloomberg forecasts that Canada will have the fastest-growing economy among G7 countries by 2025.
The Economist Intelligence Unit (EIU) recently ranked the most liveable cities in the world. According to the Global Liveability Index 2023, three Canadian cities made it into the top 10 most liveable cities in the world. Toronto was ranked 9th, Calgary was ranked 7th, and the top Canadian city was Vancouver, ranked 5th.
The number one spot went to Vienna, Austria for the second year in a row. The report ranked 173 global cities on “more than 30 qualitative and quantitative factors” according to Bloomberg.
A Look at What’s to Come
While summer is traditionally slower for real estate, we can now reflect on the Spring Market. Things were busier this spring than most experts could have expected.
Despite the surprise 0.25% interest rate hike in June, the market continues to move at a solid pace.
The Bank of Canada is meeting again on July 12 for its next policy meeting and most experts say there is a 50/50 chance that we will see another small rate hike.
Surprise rate hikes aside, most experts also agree that the Central Bank is near the end of its hiking cycle.
For both buyer and seller clients, we advise you to act soon. Home prices will not fall anytime soon, in fact, sales will continue to pick up. The imbalance between supply and demand is severe, and with 1 million new Canadians being welcomed this year, waiting to act on your buying or selling plans is not the answer.
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.
