May 2021 saw sales activity across the Hamilton-Burlington region increase by 90% year-over-year. As we faced another province-wide lockdown during May, active listings grew and average prices remained elevated, though new listings in the area decreased and home sales have moderated slightly since April 2021.
Here’s a closer look at what happened in May:
Hamilton Market Activity
|Months of Inventory||0.7||1.7||-1.0|
|Median Days on Market||8.0||19.0||-11.0|
|Average Days on Market||12.7||30.2||-17.5|
Burlington Market Activity
|Months of Inventory||0.6||1.9||-1.3|
|Median Days on Market||7.0||16.0||-9.0|
|Average Days on Market||11.3||29.7||-18.4|
In May, there were 1,811 residential property sales reported for the Hamilton-Burlington region. While this number represents a slight decrease of 5% from the month before, home sales are up 90% compared to May 2020.
While new listings decreased by 14% month-over-month, they were up 73% from the year before.
The latest wave of pandemic lockdowns during May temporarily affected homeowners’ ability to showcase their property. Since restrictions have now been lifted, we expect more listings to reach the market over the summer months.
Active listings for detached homes in May increased 2% from April 2021, while the number of active townhome listings decreased by 9% compared to the month before.
Months of Inventory
May 2021 saw a 0.6% decrease in months of inventory compared to April of this year. Burlington had 0.6 months of inventory while Hamilton had 0.7.
The Hamilton-Burlington market continues to experience intense competition due to tight inventory as the available supply of real estate is not meeting the demand for homes.
Average Days on Market
Homes in Hamilton spent an average of 12.7 days on the market in May, down from 30.2 days in May 2020. In Burlington, homes spent an average of 11.3 days on the market, down from 29.7 days last year.
The average home price in the Hamilton-Burlington area slightly decreased to $843,468 for May 2021, down just 1% from last month, and up 29% from the year before.
In Hamilton, the average home price increased by 31% year-over-year to $792,746 from $603,800.
The average home price in Burlington increased to $1,000,808 in May 2021, up 20% from $833,073 last year.
A Look at What’s to Come
As we enter June and the province-wide reopening, we expect to see additional inventory hit the market as more homeowners become comfortable showing their property amid widespread vaccination rates and the onset of favourable summer weather.
Despite the new mortgage lending rules implemented on June 1st, we expect the market will continue to experience robust levels of activity as demand for homes remains high.