The Realtors® Association of Hamilton-Burlington (RAHB) reported 1,637 residential property sales for March 2022. This represents a significant increase of 33.3% over the previous month but is still down 21.1% year-over-year. In terms of new listings, we are seeing a hefty month-over-month increase of 51.7%. There were 2,542 new listings in March, however, that is still down 6.2% over March of 2021.
The average price of a home in Hamilton-Burlington was actually down 2.7% over the previous month. However, the average price is still up 22.8% year-over-year and sits above the million-dollar mark at $1,073,342.
We’re well into the busy Spring Market and inventory remains low. Although we are seeing an increase in new listings, months of inventory still sits at about 0.7 months. This indicates that we are still in a strong seller’s market. A more balanced market or a buyer’s market would see upwards of 2-3 months of inventory according to RAHB president, Lou Piriano.
Let’s take a closer look at what happened in the local real estate market last month:
Hamilton Market Activity
| Variable | 2022 | 2021 | Difference |
|---|---|---|---|
| Sales Activity | 984 | 1,303 | -24.5% |
| Dollar Volume | $987,142,161 | $1,049,212,434 | -5.9% |
| New Listings | 1,525 | 1,706 | -10.6% |
| Active Listings | 674 | 693 | -2.7% |
| Months of Inventory | 0.7 | 0.5 | 0.2 |
| Average Price | $1,003,193 | $805,228 | 24.6% |
| Median Price | $919,000 | $742,000 | 23.9% |
| Median Days on Market | 7.0 | 7.0 | 0.0 |
| Average Days on Market | 9.1 | 11.9 | -2.9 |
Burlington Market Activity
| Variable | 2022 | 2021 | Difference |
|---|---|---|---|
| Sales Activity | 359 | 449 | -20.0% |
| Dollar Volume | $468,707,721 | $489,433,792 | -4.2% |
| New Listings | 563 | 597 | -5.7% |
| Active Listings | 226 | 241 | -6.2% |
| Months of Inventory | 0.6 | 0.5 | 0.1 |
| Average Price | $1,305,593 | $1,090,053 | 19.8% |
| Median Price | $1,200,000 | $995,000 | 20.6% |
| Median Days on Market | 7.0 | 6.0 | 1.0 |
| Average Days on Market | 8.3 | 9.1 | -0.8 |
Sales Activity
There were 984 sales in Hamilton in March of this year compared to 1,303 in 2021–a decrease of -24.5%. In Burlington, there were 359 sales in March 2022, down 20% over last year, which saw 449 sales. Overall ales activity in the Hamilton-Burlington region reached the second-highest recorded in the past 10 years and RAHB president, Lou Piriano suggests that sales activity is predicted to surpass 15,000 for the second year in a row.
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New Listings
Hamilton had 1,525 new listings in March 2022. This is down 10.6% over last year when there were 1,706 new listings. Burlington saw 563 new listings for the month, down 5.7% over the year before when there were 597. Although these numbers are up significantly month-over-month, they are still low compared to past years.
Active Listings
Active listing were down year-over-year in Hamilton by 2.7%. There were 674 active listings in 2022 and 693 in March 2021. In Burlington there were 226 active listings in March 2022, down 6.2% from 2021 when we saw 241 active listings.
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Months of Inventory
Months of inventory in Hamilton was up slightly from 0.5 in 2021 to 0.7 this month. In Burlington, months of inventory increased by 0.1 from 0.5 in 2021 to 0.6 in March 2022. This number still reflects a strong seller’s market with low inventory. A balanced market would typically have 2-3 months of inventory.
Average Days on Market
Listings continue to sell quickly in Hamilton, with a listing staying on the market for 9.1 days on average. This is is down 2.8 days from 2021 when the average days on market for Hamilton was 11.9. Burlington’s average days on market have stayed relatively stable year-over-year. In 2021 the average days on market was 9.1 compared to the 8.3 average days on market in 2022.
Average Prices
Although we have seen a slight dip in the prices month-over-month, average prices are still significantly higher than they were in 2021. In Hamilton,the average price in 2021 was $805,228. Today, it’s up 24.6% to $1,003,193. Burlington is a similar story. Prices are up 19.8% year-over-year from $1,090,053 in 2021 to $1,305,593 in 2022.
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In the News
The Toronto Regional Real Estate Board (TRREB) is reporting that the first quarter of 2022 has been a more balanced market than we have seen in recent months. Prices in Toronto have dipped slightly 2.6% month-over-month, while sales in the region dropped 30% over last year. New property listings have also dropped 12% year-over-year, giving some more balance to what has been an incredibly tight market since the start of the pandemic.
This month, the Ontario government increased its tax on foreign homebuyers from 15% to 20%. Officials say this is the most comprehensive non-resident speculation tax in the country. In addition to raising the rate, the tax has now been expanded province-wide, when previously it only applied to non-resident homebuyers in the Greater Golden Horseshoe area.
In an effort to increase housing supply, the provincial government has introduced a bill that would streamline approvals for new home construction, giving more power to municipalities to speed up the process. Municipal Affairs and Housing Minister Steve Clark says this bill will help create more housing faster and help reduce home prices. However, the opposition is skeptical and believes that more sweeping reforms are required to make meaningful changes.
Canada’s six big banks are unanimous in predicting an oversized rate hike as the Bank of Canada meets for its next policy decision on April 13. Experts are predicting a 0.5% rate increase, bringing the Policy Rate to 1%. This would be the first 50-basis point hike in 22 years. The significant rate hike comes as inflation hits an all-time high and Canada’s unemployment rate reaches a 50-year low–all signs that Canada’s economy is recovering well from the pandemic.
A Look at What’s to Come
As we continue through the Spring Market, we are noticing an increase in listing inventory. However, we remain in a very tight Seller’s Market. Despite the inventory increase and February’s 0.25% interest rate hike, there has only been a slight moderating effect on the market and most properties are still selling with multiple offers in a short period of time.
This is still a challenging market for buyers, as prices rise, borrowing costs rise, and budgets decrease due to rising inflation. We recommend that buyers get their mortgage pre-approvals immediately and get into the market as quickly as they can before rates rise even more.
Sellers are in a better position. However, as the market continues to moderate, now is the optimal time to sell.
Are you thinking about making a real estate move in the near future? Consider hiring a real estate agent in Hamilton. Call us at 1-844-484-SOLD or email us here for everything you need to know about buying and selling in this market.
