There were 608 total sales reported in the Hamilton-Burlington area last month according to the Realtors® Association of Hamilton-Burlington. This is up slightly over last year. New listings remained relatively stable year-over-year while inventory slowed month-over-month, it was up 10.7% year-over-year across the region.
Although most figures paint a picture of stability in the market, a look at the long-term trends shows sales are below what was seen before the pandemic and are more in line with what we saw happening in the market before 2014.
The benchmark price in the region was $809,600, which is slightly higher month-over-month, but fairly stable year-over-year. RAHB president Nicolas von Bredow attributes this to the stable markets in Hamilton and Burlington while higher months of supply in Haldimand and Niagara North contributed to a dip in prices.
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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 | 383 | 4.9% |
| New Listings | 671 | -0.6% |
| Active Listings | 1,102 | 10.9% |
| Months of Inventory | 2.9 | 5.7% |
| Average Price | $794,982 | 5.8% |
| Median Price | $720,000 | 0.0% |
| Average Days on Market | 48.9 | 32.5% |
Burlington Market Activity
| Variable | 2024 | Difference |
|---|---|---|
| Sales Activity | 128 | 12.3% |
| New Listings | 236 | -2.9% |
| Active Listings | 304 | 5.6% |
| Months of Inventory | 2.4 | -6.0% |
| Average Price | $975,670 | 8.1% |
| Median Price | $908,750 | 19.6% |
| Average Days on Market | 41.5 | 38.0% |
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Sales Activity
There were 383 sales in Hamilton last year, which was up 4.9%. Home sales in Burlington were up 12.3% with 128 total sales.
New Listings
New listings dipped slightly in Hamilton about 0.6% with 671 new listings coming to market. Burlington saw a slightly larger dip of 2.9% year-over-year with 236 new listings hitting the market.
Active Listings
Inventory, or active listings were up 10.9% in Hamilton with 1,102 listings. Inventory in Burlington saw a more moderate gain of 5.6% year-over-year with 304 active listings on the market.
Months of Inventory
Months of inventory or supply is a measure often used to determine whether we are in a buyer’s or seller’s market. Anything above 3 months is typically considered to be a buyer’s market. In January, Hamilton’s months of supply was at 2.9, which is 5.7% higher than last year. Burlington actually saw a dip in months of supply by about 6% with 2.4 months of inventory reported.
Average Days on Market
The average days on market in both Hamilton and Burlington went up in January. In Hamilton, we saw 48.9 days on market, up 32.5% over last year. Burlington was slightly lower at 41.5 days on market, on average (up 38% year-over-year).
Average Prices
The average price for a residential home in Hamilton was $794,982 in Hamilton last month, up 5.8% over last year. Burlington residential prices were up 8.1% with the average home price hitting $975,670.
In the News
Paul Beaudry, former Deputy Governor with the Bank of Canada says he expects to see the central bank begin cutting rates in July, as long as “inflation pressure ease as expected.” In a recent interview, Beaudry also said that the “neutral rate” may be higher now than before the pandemic. According to the Bank of Canada, the neutral rate is the “level of interest rates that neither stimulate nor restrict the economy.”
The federal government announced that it would be extending the ban on foreign home buyers for another two years until January 1, 2027. The ban aims to help with rising housing costs in Canada, particularly impacting major cities like Toronto and Vancouver.
The federal government has also announced a cap on the number of foreign student visas it will issue this year. This news comes after the number of foreign students in Canada tripled to over one million in 2023, “exacerbating the severe housing shortage in the country.” Immigration Minister Marc Miller said there will be a two-year temporary cap on visas and that the government will approve about 364,000 visas in 2024.
Meanwhile, the Ontario provincial government is introducing new regulations to ensure international students are guaranteed access to housing. The provincial government will require all colleges and universities to comply. The measures will also review programs offered by educational institutions with a sizable international student population to ensure programs meet labour market demands.
Rental prices in Hamilton were down month-over-month in December, however, prices remained up year-over-year. According to Rentals.ca, the average price of a two-bedroom rental home in Hamilton was $2,185, which is about $40 less than November 2023.
A Look at What’s to Come
With interest rates on hold, anticipation of when the rates will come down is building. The market has picked up dramatically since December due to pent-up demand from all the buyers sidelined by market conditions.
The media has been reporting on the struggle for homebuyers to find the perfect way to “time” the market and about how many buyers are already experiencing the “frenzy” trying to get ahead of what will likely turn into a shopping spree once the rates eventually do go down.
Many experts are forecasting rates going down in July, and when that happens any dip in prices we saw recently will be long forgotten. If you’re a buyer, the time to buy is now.
If you’ve been waiting to sell, that time has also come. There are at least two years’ worth of sellers who have been waiting for the right time. If they all list during the spring market, it will result in a massive amount of inventory and increased competition. Sellers need to get ahead of that list now.
The battle over inflation appears to be won. With markets stabilizing, we can already feel activity picking up. Even in our office, December activity saw an uptick with more showings, more inquiries, and market sentiment improving significantly. Overall, 2024 should be a fairly positive year for the real estate market in Canada.
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.
