There were 672 sales reported in the Realtors® Association of Hamilton Burlington (RAHB) area in november 2022. This is down 13% over October 2022 and 42% down from November 2021. New listings in the area were also down month-over-month by 21%, however, new listings were up by about 2% year-over-year.
Prices in the area were also down, we saw the benchmark price, which is the estimated value of a typical home in a community, for residential properties drop by almost 1% month-over-month and 9% compared to previous year. The current benchmark price for the RAHB area is $830,900.
These numbers are showing improvements in supply levels, providing buyers with more choice and negotiating power when it comes to purchasing. While softening prices are making headlines, RAHB president, Lou Piriano says it’s important to remember that the rate of decrease is slowing, and that prices in the region are still significantly higher than pre-pandemic prices.
As we head into the final weeks of the year, read our blog to see our predictions for what 2023 will hold for the real estate market. Read our blog right here.
Let’s take a closer look at what happened in the local real estate market last month:
Hamilton Market Activity
| Variable | 2022 | Difference |
|---|---|---|
| Sales Activity | 425 | -44% |
| New Listings | 791 | -3.2% |
| Active Listings | 1,278 | 221.1% |
| Months of Inventory | 3.0 | 473.5% |
| Average Price | $761,244 | -8.8% |
| Median Price | $711,000 | -9.1% |
| Average Days on Market | 28.4 | 133.8% |
Burlington Market Activity
| Variable | 2022 | Difference |
|---|---|---|
| Sales Activity | 143 | -37.3% |
| New Listings | 221 | -8.7% |
| Active Listings | 385 | 327.8% |
| Months of Inventory | 2.7 | 528.1% |
| Average Price | $970,726 | -18% |
| Median Price | $895,000 | -12.9% |
| Average Days on Market | 30.7 | 163.1% |
Sales Activity
Hamilton sales were down 44% year-over-year with 425 sales reported in November 2022. Burlington sales were down about 37% with 143 sales reported. These easing sales numbers are typical for this time of year leading up to the holiday season.
New Listings
Inventory in Hamilton-Burlington remains low, however, we are seeing levels begin to normalize. In Hamilton, there were 791 new listings last month, down 3.2% year-over-year. Burlington had 221 new listings, which was down 8.7% from last year.
Active Listings
Inventory, also known as active listings saw a significant increase both month-over-month, and year-over-year. Inventory was up 221% with 1,271 active listings in Hamilton. Burlington saw an increase of 328% over last year with 385 active listings last month.
Months of Supply
Months of supply across the region was up to 3.2 in November 2022. In Hamilton, months of supply was up 473% year-over-year to 3 months. Burlington months of supply was up 581% over last year with 2.7 months. Months of supply, sometimes also referred to as months of inventory, is a measurement used to tell how long it would take to sell off the entire inventory of homes for sale, supposing no new listings enter the market. Many experts say anything above 3 months of inventory is considered to be a “buyer’s market.”
Average Days on Market
Homes are taking longer to sell in the RAHB area. In Hamilton, the average days on market is at 28.4, which is 134% higher than last year. Burlington’s average days on market is up to 30.7, which is 163% higher than 2021.
Average Prices
The average home price in Hamilton-Burlington is also down. In Hamilton, the average price for a residential home is $761,244–down almost 9% over last year. The average price for a residential home in Burlington is $970,726, which is down 18% over November 2021.
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In the News
The Bank of Canada is making the news this month after its latest interest rate hike on December 7. The most recent 50-basis point hike brings the total policy rate to 4.25%, which is the highest it has been since 2008. However, many economists believe this could be the end of the aggressive rate hikes from the central bank. Some are predicting no rate hike at the next meeting in January.
Interestingly, despite the past 8 months of aggressive rate hikes, the Toronto Regional Real Estate Board is reportinging continued decline in sales and home prices–indicating that most Canadians are “weathering” the increases and are not feeling the pressure to list and sell their homes due to increasing rates.
With 2023 just around the corner, we are preparing for the prohibition of non-resident homebuyers coming into effect on January 1. The legislation, which was announced at the peak of the market in the spring, would see a 2-year ban on non-residents purchasing real estate in Canada. While there are many exceptions to the rule, this restriction was meant to help Canadians secure housing in a competitive market. However, since the market has since shifted, many industry professionals are left wondering if the law will have any impact at all.
A Look at What’s to Come
The latest market slowdown is likely a combination of market factors, including the rising interest rates, and seasonal factors. It’s typical to see fewer listings and sales during the months of November and December as we approach the holiday season.
It’s important to remember that the softening prices are coming down from the peak of the market, and that home prices are still significantly higher than pre-pandemic levels. Additionally, the rate of decline is also leveling off since the first major interest rate increase this year, which shows the market is stabilizing.
As we head into 2023, many industry experts agree that the market will likely shift towards more of a buyer’s market. This means that homes will remain on the market for longer periods and buyers will have more negotiating power.
However, it should also be noted that the market is nuanced and can differ based on specific neighborhoods and property types. The best idea for anyone looking to buy or sell real estate in the coming months is to work with a local real estate agent who knows the area and can provide up-to-the-minute accurate advice based on the current market insights.
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.
