The end of May marked two full months under a provincial state of emergency in Ontario. This past month, the province has taken the first steps in reopening the economy and loosening restrictions.
As a result, consumer confidence is growing and the real estate market is kicking into gear.
In fact, we’ve already seen an increase in sales activity compared to April, and home values are continuing to rise.
Here’s a closer look at what happened in the market in May:
Hamilton Market Activity
| Variable | 2020 | 2019 | Difference |
|---|---|---|---|
| Sales Activity | 574 | 958 | -40% |
| Dollar Volume | $347,027,793 | $527,337,283 | -34% |
| New Listings | 762 | 1,530 | -50% |
| Active Listings | 965 | 1,415 | -32% |
| Months of Inventory | 1.7 | 1.5 | 0.2 |
| Average Price | $604,578 | $550,456 | 10% |
| Median Price | $575,000 | $507,250 | 13% |
| Median Days on Market | 17.0 | 15.0 | 2.0 |
| Average Days on Market | 28.9 | 25.6 | 3.3 |
Burlington Market Activity
| Variable | 2020 | 2019 | Difference |
|---|---|---|---|
| Sales Activity | 189 | 364 | -48% |
| Dollar Volume | $157,778,736 | $271,088,103 | -42% |
| New Listings | 283 | 557 | -49% |
| Active Listings | 348 | 499 | -30% |
| Months of Inventory | 1.8 | 1.4 | 0.5 |
| Average Price | $834,808 | $744,748 | 12% |
| Median Price | $751,000 | $695,000 | 8% |
| Median Days on Market | 15.0 | 15.0 | 0.0 |
| Average Days on Market | 28.5 | 24.8 | 3.7 |
Sales Activity
As expected, sales are down compared to the average spring market. But compared to this past April, things are looking up!
The REALTORS® Association of Hamilton-Burlington (RAHB) saw a 42.2% decrease in sales activity compared to May 2019, but an increase of 43.4% from April 2020.
Overall, RAHB reported that 852 sales of residential properties located within the market area were processed through the MLS® in May.
New Listings
Hamilton’s new listings were down 50% while Burlington saw a 49% fall. Overall, we saw a slight improvement from April; the market has remained robust and we are continuing to sell.
Active Listings
When we look at the number of active listings in May, we can see the impact of the state of emergency. Hamilton’s active listings fell 32% year-over-year and Burlington’s fell 30%.
Months of Inventory
Hamilton currently has 1.7 months of inventory and Burlington has 1.8 months. It’s a dramatic shift compared to April, when Hamilton had 2.9 months of inventory and Burlington had 3.0.
With this shift, we can see that activity is heating up and that we are in an even stronger seller’s market, similar to where things stood pre-COVID-19.
Average Days on Market
Throughout the area, homes are staying on the market for close to a month. Burlington homes spent an average of 28.5 days on the market, while Hamilton homes spent 28.9.
Average Prices
Across the RAHB region, the average price for a residential property went up 10% year-over-year to $655,418. That’s a 6.3% increase from April.
In Burlington, the average home price rose by 12% year-over-year to $834,808.
In Hamilton, a 10% year-over-year increase brings the average home price up to $604,578.
A Look at What’s to Come
It’s important to look at the big picture. The fundamentals of our market remain strong on the regional and local levels; this was never a housing crisis or financial crisis.
Prices continue to rise and sales continue to pick up as restrictions are lifted and people get more comfortable. There was a fairly dramatic positive change just between April and May, and we expect that to continue in June.
Interest rates remain at historic lows and will remain there for quite some time. Labour markets are recovering, the economy is full of government stimulus, and the worst is now behind us.
In our current market, you need all the expert advice you can get. If you have a question about buying or selling your home, call us at 1-844-484-SOLD or email us here.
