There were 690 home sales in Hamilton-Burlington last month according to the Cornerstone Association of Realtors®. Slow sales in August contributed to a 7% dip in year-to-date figures. Sales were also down compared to long-term trends.
New listings remained “consistent” with long-term trends, however, the slower sales are creating inventory levels that are up year-over-year and up over the long-term trends. Months of inventory was up to over 4 months, which is the highest our area has seen in 14 years.
The unadjusted benchmark price was $840,300, which was down month-over-month and down about 2% over last year.
According to Cornerstone spokesperson for Hamilton-Burlington, Nicolas von Bredow, the increases in inventory will provide buyers more flexibility and selection, as interest rates come down buyers can take advantage of lower rates and lower prices before a “strain on inventory” drives home values back up again.
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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 | 424 | -15.0% |
| New Listings | 955 | -1.1% |
| Active Listings | 1,922 | 32.1% |
| Months of Inventory | 4.5 | 55.5% |
| Average Price | $794,404 | -0.3% |
| Median Price | $728,450 | -2.9% |
| Average Days on Market | 34.8 | 44.1% |
Burlington Market Activity
| Variable | 2024 | Difference |
|---|---|---|
| Sales Activity | 152 | -18.7% |
| New Listings | 303 | -5.6% |
| Active Listings | 561 | 48.4% |
| Months of Inventory | 3.7 | 82.6% |
| Average Price | $1,172,556 | 10% |
| Median Price | $995,375 | 3.7% |
| Average Days on Market | 28.5 | 24.1% |
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Sales Activity
Home sales were down in both Hamilton and Burlington last month. In Hamilton, there were 424 sales reported, down 15% over last year. Burlington had a steeper decline with 152 sales, down 18.7% over last August.
New Listings
There were also slightly fewer new listings coming to market in both areas. Hamilton had 955 new listings, down about 1% over last year, while Burlington had 303 new listings hit the market, down about 5.6% year-over-year
Active Listings
Slower sales in the region contributed to a sharp increase in active listings, also called inventory. Hamiltonhad 1,922 active listings, up 32.1% over August 2023. There were 561 active listings in Burlington, which was up about 48.4% year-over-year.
Months of Inventory
Months of inventory in Hamilton-Burlington hit a 14 year high this month. In Hamilton, there were 4.5 months of inventory, up 55.5% over last year. Burlingtonhad 3.7 months of inventory, up 82.6% over last year. Months of inventory is often used as a measure of market conditions. Anything above 3 months is considered to be a “buyer’s market.”
Average Days on Market
Both regions saw the average days on market increase year-over-year. In Hamilton, there were 34.8 days on market, up 44.1% over August 2023. Burlington’s days on market was 28.5, which is up 24.1% over last year.
Average Prices
Although the overall average price in the region was slightly down year-over-year, Burlington prices actually went up last month. The residential average price in Burlington was up 10% over last year at $1,172,556. Hamilton home prices were down by less than 1% year-over-year, resting at $794,404.
In the News
The Bank of Canada cut its Policy Rate to 4.25% earlier this month. The 25 basis point reduction was the third consecutive rate cut after the BOC said they are seeing “continued easing in broad inflationary pressures.”
At the same time, Canadian inflation has been within the Bank of Canada’s neutral target range for the past several months, decelerating further over the summer. In July, the consumer price index rose 2.5% over last year, the lowest rate of annual inflation since March 2021.
This month’s rate cut was anticipated by economists, who also forecast “faster and deeper” rate cuts over the next year. Data shows economists are predicting to see the policy rate reach 3% by July 2025 and is “expected to average 2.75%” in 2026.
The Canadian economy added about 22,100 new jobs in August, but the unemployment rate still increased more than what was anticipated. Unemployment in Canada was up by 0.2 percentage points to 6.6%. This is the highest rate of unemployment seen outside of the pandemic since May 2017.
Earlier this month, NDP Leader Jagmeet Singh posted a “campaign-style” video about “ripping up” the supply-and-confidence agreement his party had with Justin Trudeau and the Liberal government. In the video, Singh talks about Canada being at a crucial point, where trust in the Liberal Party is diminishing, while accusing Conservative Leader Pierre Poilievre of making cuts that would be harmful to Canadians. It is not yet clear what ramifications these actions will have on housing policy on either side of the aisle.
Conservative Leader, Pierre Poilievre has said Canada must slow its population growth to better align with “growth in housing, jobs, and healthcare.” Poilievre was critical of the Liberal Party’s immigration policy saying that Justin Trudeau has been adding new residents “at three times the rate of housing stock.” If elected, Poilievre says he will aim to have a growth rate that falls below growth in housing, health care, and employment, but he did not say exactly what that would look like in terms of immigration numbers.
A Look at What’s to Come
The summer real estate market has officially wrapped up and the fall is now upon us. I hope you had a great summer! As the kids go back to school, the season has kicked off with a 0.25% interest rate cut from the Bank of Canada, with another possible cut expected at the next policy meeting on October 23rd.
For every 1% decrease in the Bank of Canada’s key interest rate, buyers gain approximately 10% in purchasing power. This, of course, is assuming prices stay the same, though they likely won’t. Buyers on the fence should consider entering the market now before increased purchasing power drives up home values.
On the selling side, we’ve seen a high level of inventory over the past few months, leading to increased competition and dampened price gains. With the fall here, we expect to see another surge in inventory. Sellers looking to list this fall would benefit from getting ahead of the anticipated influx and listing their properties now.
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.
