According to the Realtors Association of Hamilton-Burlington (RAHB), sales activity in November was down 3% over 2020. Sales were also down 10% over October 2021, which indicates that diminishing supply is still a major issue in the region. New listings in Hamilton-Burlington were also down 3% over last year and 10% over last month.
However, despite low numbers across the region, at Michael St. Jean Realty, we experienced our best month on record, with sales up 60% over last month.
As we head into the holiday season, it’s expected to see a continued trend of fewer homes for sale in Hamilton and for demand to greatly outpace supply into the new year.
Here’s a closer look at what happened in November:
Hamilton Market Activity
|Dollar Volume||$634,250,574||4 $509,223,923||25%|
|Months of Inventory||0.5||0.9||-0.4|
|Median Days on Market||8.0||10.0||-2.0|
|Average Days on Market||13.5||17.||-3.6|
Burlington Market Activity
|Months of Inventory||0.4||0.9||-0.6|
|Median Days on Market||7.0||10.0||-3.0|
|Average Days on Market||12.6||19.8||-7.1|
The RAHB reported 1,199 residential sales through the MLS for the Hamilton-Burlington area in November. This is down 10% over the previous month and down 3% over November 2020.
With inventory remaining at all-time lows, new listings are also reduced over previous months and years. New listings are down 10% month-over-month and 3% over November 2021. With the holiday season approaching, new listings will remain sparse.
Active listings were down 46% over November 2020 from 712 to 383 this year. Active listings in Burlington took an even bigger drop of 68% year-over-year, from 254 in 2020 to 82 this year. Such reduced inventory presents an even bigger challenge for buyers since there are simply not enough homes available to satisfy the demand.
Months of Inventory
Months of inventory have also seen a stark decline year-over-year. In November 2020, Hamilton had 0.9 months of inventory, while this year that number sits at 0.5, a reduction of 0.4. In Burlington, we see a similar pattern with 0.9 months of inventory in 2020 and 0.4 this year, marking a reduction of 0.5.
Average Days on Market
The average number of days a property spends on the market has also declined for Hamilton and Burlington, further speaking to the increased competition among buyers in this hot seller’s market. In Hamilton, the average number of days on market has gone down by 3.6 days from 17 in November 2020 to 13.5 days in 2021. In Burlington, the average number of days on market is down by 7.1 days from 19.8 days in 2020 to 12.6 days this year. This means buyers need to act quickly and be flexible if they hope to secure a property in this market.
According to the RAHB, the average price in Hamilton-Burlington has gone up 27% since last November, although prices have dropped 1% since October 2021. The current average price for Hamilton-Burlington is $911,673.
Drilling down into area specifics, Hamilton’s average home prices increased by 28% over November 2020 from $650,350 to $835,640.
Burlington average prices increased by 26% year-over-year from $920,829 in 2020 to $1,175,264.
Although detached homes remain the tightest market in the region, apartment-style condos in Hamilton seem to remain slightly more stable. The average price for a condo for sale in Hamilton is down 6% over last month to $564,827.
In the News
Hamilton is making news this month after City Council’s landmark vote to essentially freeze the city’s urban sprawl. After much debate, public outcry, and many education campaigns, the council voted 13-3 in favour of building up Hamilton’s existing urban areas to handle expected population growth. This decision essentially protects over 3,200 acres of farmland. Environmentalists hope this move will inspire other cities to do the same.
A new report from Stats Canada says that the annual pace of inflation is at the highest its ever been since February 2003. The rate increased to 4.7% this past month, and economists are contributing the spike to rising gas prices and food prices. These price increases are in products that are difficult to curb spending on, but many economists are also reporting that many Canadians are actually in a better financial position than they were pre-pandemic since the pandemic provided an opportunity to save money.
In an effort to improve affordability for Toronto homeowners, the City of Toronto has approved new guidelines that will require certain housing developments to include affordable unit options. The “inclusionary zoning framework” will apply to new housing developments targeted around major transit stations in 2022.
A Look at What’s to Come
With the holiday season quickly approaching, we can expect the real estate market to take a back seat for many buyers and sellers as they focus on spending time with family and friends. Low inventory and rising prices are expected to persist into the new year.
However, for sellers, holiday and winter selling might be a great time to list, since it could appeal to motivated buyers ready to sell and ready to take advantage of reduced competition in the marketplace.
Sellers can also take this time to begin preparations for their home to list in the spring market. If your home requires any renovations or repairs, now is the time to do it so you can be ready to hit the ground running in the spring.
For buyers, winter could be a great time to buy, since there will be less competition from other buyers at this time and sellers who might be more motivated to sell quickly. Upcoming interest rate increases should also motivate buyers to lock in low rates now before they go up in the spring.
Regardless of your situation or if you’re interested in buying or selling in downtown Hamilton or outlying areas like Ancaster real estate, working with an established and experienced Hamilton real estate agent is the best way to navigate a competitive market.
Interested in getting weekly market updates, the latest real estate news and exclusive offers on the most recent Hamilton developments delivered right to your inbox? Sign up for our weekly newsletter The St. Jean Report here.