Higher interest rates and “economic uncertainty” resulted in slower market activity in early 2024. By the end of the year, we saw improvements, but not enough to offset the sluggish spring. There were 10,210 total sales in Hamilton-Burlington in 2024, slightly up over the previous year but still 26% below long-term trends.
According to the Cornerstone Association of Realtors®, there were 556 sales in the area in December, up about 20% over the previous year. New listings were also up about 19% over December 2023. The average price in Hamilton-Burlington was $835,098, up about 2.2% over last year.
Cornerstone spokesperson for Hamilton-Burlington, Nicolas von Bredow says as interest rates have moderated, some homebuyers have taken advantage of more selection of homes available. Von Bredow says this trend should continue into 2025 as rates continue to trend downward, we should see more sidelined buyers re-enter the market.
Are you subscribed to the St. Jean Report? Get weekly real estate news and insights delivered right to your inbox Subscribe here.
Let’s take a closer look at what happened in the local real estate market last month:
Hamilton Market Activity
| Variable | 2024 | Difference |
|---|---|---|
| Sales Activity | 344 | 10.6% |
| New Listings | 382 | 23.2% |
| Active Listings | 1,400 | 13.5% |
| Months of Inventory | 4.1 | 2.7% |
| Average Price | $772,705 | 2.3% |
| Median Price | $720,000 | 2.1% |
| Average Days on Market | 51.3 | 30.4% |
Burlington Market Activity
| Variable | 2024 | Difference |
|---|---|---|
| Sales Activity | 126 | 23.5% |
| New Listings | 95 | 30.1% |
| Active Listings | 343 | 10.3% |
| Months of Inventory | 2.7% | -10.7% |
| Average Price | $1,040,535 | -0.9% |
| Median Price | $917,500 | -2.6% |
| Average Days on Market | 43.9 | 7.5% |
The real estate market is always changing. Before buying or selling, make sure you’re up-to-date on the latest insights. Read our past market report blogs right here.
Sales Activity
Last month, there were 344 residential home sales in Hamilton, up 10.6% over December 2023. Burlington had 126 sales, up 23.5% over the same period the previous year.
New Listings
New listings were up across the region last month. In Hamilton, there were 382 new listings, up 23.2% year-over-year. There were 95 new listings in Burlington, up 30.1% over the previous year.
Active Listings
Active listings, otherwise known as inventory was also up across the region. In Hamilton, we saw 1,400 active listings on the market, up 13.5% over last year. There were 343 active listings in Burlington last month, up 10.3% over December 2023.
Months of Supply
Months of supply is often used as a market measure. Anything above 3 months is generally considered to be a buyer’s market. In Hamilton, months of inventory was up 2.7% with 4.1 months. Months of supply was down in Burlington by about 10.7% to 2.7 months of supply.
Average Days on Market
Despite an increase in sales, the average days on market in Hamilton was still up over last year at 51.3 days, up 30.4% over last year. Burlington saw a more moderate increase. The average days on market was 43.9, up 7.5% over December 2023.
Average Prices
The average residential price in Hamilton was $772,705, up about 2.3% over December 2023. The average price in Burlington dipped by less than 1% in December to $1,040,535.
In the News
After a turbulent December in the Liberal Party with the resignation of Finance Minister and Deputy Prime Minister Chrystia Freeland, Prime Minister Justin Trudeau also announced his resignation earlier this month. After mounting pressure from the party, Trudeau announced he would step down as party leader and prime minister when a new leader was elected, proroguing Parliament until March.
After President-Elect Donald Trump’s comments about Canada becoming the ‘51st state,’ Prime Minister Justin Trudeau said there is not a “snowball’s chance in hell” that Canada would become the 51st U.S. state and that these comments serve as a “distraction from the consequences of Trump’s tariff threats.” Trudeau and the provincial premiers have met virtually and in person to discuss the response to Trump’s 25% tariff he says he will sign into executive order on his first day as President.
Other industry figures have spoken out about the situation including the president of the Automotive Parts Manufacturers’ Association recently saying that Donald Trump does not understand the relationship between the Canadian and U.S. auto industry.
Home prices in Canada are expected to increase in 2025 according to Ted Rechtshaffen, president, portfolio manager, and financial planner at TriDelta Private Wealth. In an op-ed for the Financial Post earlier this month, he cited five reasons why home prices will rise by at least 10% year-over-year. Among his top reasons, Rechtshaffen noted pent-up housing demand, increased immigration, lower mortgage rates, and an increase in the price cap on insured mortgages as the main factors for price increases this year.
A Look at What’s to Come
December wrapped up an interesting year for the real estate market. The Bank of Canada began lowering interest rates. Although overall sales were down year-over-year, they picked up in the second half, and prices fluctuated but ended slightly up year-over-year.
Our team had a very busy December, with sales up over 200% compared to last December, even though market-wide sales were down 6%. It was our best December in history!
2025 is here, bringing a lot of excitement and change.
Canada will have a new prime minister and likely a new housing policy. U.S. President Donald Trump takes office later this month and is threatening tariffs on Canada. It is expected that the Bank of Canada will lower interest rates at their first meeting later this month.
We anticipate interest rates will continue dropping at least through the first half of 2025, leading to increased sales as buyers on the sidelines re-enter the market. We expect prices to rise again this year, likely more than last year, but avoiding the massive increases of previous years as the market moderates.
Even in the first few days of 2025, the market is off to a busy start for us. If you are thinking of buying or selling at any time in 2025, now is the time to get in touch with us to start considering your options and create a plan.
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.
