There were 797 sales reported through the MLS® in July 2023 according to the Realtors® Association of Hamilton-Burlington (RAHB). This is down over the previous month but up over July 2022.
Inventory in the region trended upward month-over-month, with more new listings relative to sales. Months of inventory was up over June as well, resting at 2.9 compared to the previous month at 1.8. Although new listings and inventory are both up over June, we are still seeing lower-than-average inventory compared to historical norms.
The unadjusted benchmark price for the RAHB area was $873,600 which is only $500 higher than in June 2023 and, in general, remains much higher than pre-pandemic levels.
We are currently in the midst of the Summer Market, where real estate is traditionally slow, but in the next few weeks will transition into the Pre-Fall Market and should expect to see things get busier.
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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 | 2023 | Difference |
|---|---|---|
| Sales Activity | 470 | 0.9% |
| New Listings | 1,114 | 8.1% |
| Active Listings | 1,403 | -8.2% |
| Months of Inventory | 3.0 | -9.0% |
| Average Price | $847,087 | 5.5% |
| Median Price | $774,000 | 6.0% |
| Average Days on Market | 20.8 | -5.2% |
Burlington Market Activity
Variable 2023 Difference
Sales Activity 198 5.9%
New Listings 326 -11.2%
Active Listings 346 -27.3%
Months of Inventory 1.7 -31.3%
Average Price $1,153,043 2.6%
Median Price $1,099,950 8.9%
Average Days on Market 19.2 -23.2%
Before buying or selling, make sure you’re fully familiar with the local real estate market. You can read our past Hamilton-Burlington real estate market report updates right here.
Sales Activity
Residential home sales in Hamilton were up 0.9% year-over-year with 470 sales reported through the MLS®. Burlington home sales were up 5.9% year-over-year with 198 sales reported.
New Listings
New listings in Hamilton were up 8.1% over July 2022 with 1,114 new listings hitting the market. In Burlington, new listings were down over last year by about 11.2% with only 326 new listings coming to market.
Active Listings
Inventory in the area was down year-over-year in Both Hamilton and Burlington. In Hamilton, inventory was down 8.2% with 1,403 active listings. In Burlington, inventory was down 27.3% with 346 active listings.
Months of Inventory
Months of inventory, also known as months of supply is a measure used to determine the type of market we are in. Most experts agree that a figure below 3 months would indicate a strong seller’s market, while anything above 3 months is indicative of a buyer’s market. In Hamilton, months of inventory is at 3.0, which is down 9% over last year. Burlington months of supply rests at 1.7, which is down 31.3% over last year.
Average Days on Market
Average days on the market were similar in both cities and both were down over last year. In Hamilton, the average days on market was 20.8, down 5.2% over 2022. Burlington average days on market was down 23.2% at 19.2.
Average Prices
Although month-over-month, we are seeing pricing stability across the area, on a year-over-year basis, there are still price gains. The average price of a residential home in Hamilton went up 5.5% over last year with an average price of $847,087. Year-over-year prices in Burlington were up 2.6% over 2022 landing at $1,153,043 for July 2023.
In the News
Last month, the Bank of Canada raised interest rates for the second consecutive month in a move that many economists were expecting. The rate was hiked 25 basis points on July 12, resting at 5%.
This is the highest policy rate since 2001. At the time, the central bank did not give an indication on future hikes but reported that it remains “resolute” on reaching target inflation numbers.
Later in the month, a new report from Statistics Canada showed that inflation has, in fact, slowed to within the Bank of Canada’s control range for the first time since spring 2021.
The Consumer price index was up 2.8% in June, which is slower than what many economists predicted. While these decreases are welcome news, the Bank of Canada noted that “core measures” of inflation remain sticky and that we can expect to see inflation hover around the 3% range for at least the next year.
Toronto home sales fell for the second straight month, down 8.8% over June 2023, indicating that the restarted Bank of Canada rate hike is working to cool the market. Price gains also slowed in July, with the benchmark price rising just 1.1% from June 2023 to about $1.7 million.
Although new listings are increasing month-over-month, inventory is still low comparatively. TRREB President, Paul Baron stated that rising interest rates and a “persistent lack of listings” has slowed the sales momentum seen in Toronto during the spring market.
A Look at What’s to Come
The Summer Market is well underway and will soon come to an end. Once September starts, we will enter the Pre-Fall Market.
The summer is traditionally a slow season for real estate and we did see balance return to the market. The Bank of Canada’s 0.25% rate increases in June and July successfully shocked the system and worked to cool the market and slow inflation.
The most recent increases were intended to remind Canadians that the central bank is prepared to do anything to fight inflation–and it worked.
Last month, inflation slowed dramatically and is now within the BoC’s target range between 1-3%. If the economy holds steady at current levels, we can safely say that the inflation battle has been won.
Although home sales are naturally slow in the summer, there is still a flurry of activity behind the scenes. The market will absolutely pick up in the fall, and now is the time to prepare your home if you plan to list in the next few months.
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.
