The Realtors® Association of Hamilton-Burlington reported 835 sales in June, a relative slowdown compared to long-term trends across all neighbourhoods and property types in the region
New listings continued to rise with 2,048 coming to market in June, contributing to further inventory gains. Active listings in June were up 54% compared to last year, well above the long-term trends, and driven across all price ranges.
The benchmark price dipped slightly by about 2% year-over-year in June, landing at $849,900.
Cornerstore Association of Realtors® Spokesperson Nicolas von Bredow said that despite the recent cuts to interest rates, many buyers are likely waiting for further rate cuts or a “shift in market conditions.” Rising inventory “has likely reduced the sense of urgency experienced during periods of low inventory,” he said.
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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 | 495 | -25.3% |
| New Listings | 1,264 | 7.4% |
| Active Listings | 1,952 | 54.9% |
| Months of Inventory | 3.9 | 107.5% |
| Average Price | $831,190 | 0.4% |
| Median Price | $810,000 | -2.4% |
| Average Days on Market | 25.2 | 27.8% |
Burlington Market Activity
| Variable | 2024 | Difference |
|---|---|---|
| Sales Activity | 199 | -28.2% |
| New Listings | 417 | -3.5% |
| Active Listings | 593 | 73.4% |
| Months of Inventory | 3.0 | 141.4% |
| Average Price | $1,215,419 | 4.3% |
| Median Price | $1,325,000 | -0.4% |
| Average Days on Market | 20.3 | 26.0% |
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
There were 495 home sales in Hamilton last month, down 25.3% year-over-year. Burlington home sales were down 28.2% with 199 sales in total.
New Listings
There were 1,264 new listings in Hamilton in June, up 7.4% over June 2023. In Burlington, new listings were slightly down. There were 417 new listings, down 3.5% year-over-year.
Active Listings
Inventory, or active listings, were on the rise in both Hamilton and Burlington. In Hamilton, there were 1,952 active listings, up 54.9% over June of the previous year. Active listings in Burlington were up 73.4% with 593.
Months of Inventory
Months of supply, also known as months of inventory, is often used as a gauge for market conditions. Anything above 3 months of inventory is often considered to be a strong Buyer’s Market. In Hamilton, there were 3.9 months of inventory, up 107.5% year-over-year. Burlington had 3 months of inventory, up 141,4% over last year.
Average Days on Market
Average days on market were up in both Hamilton and Burlington last month. Hamilton’s average days on market was 25.2 days, up 27.8% over June of last year. Burlington had 20.3 days on market on average, up 26% over last year.
Average Prices
Year-over-year, the average residential price in Hamilton was up 0.4% with $831,190. The average price in Burlington was up 4.3% year-over-year with $1,215,419.
In the News
Canadian inflation unexpectedly rose to 2.9% last month, less than 3 weeks after the Bank of Canada lowered interest rates. The latest inflation news could be a setback for policymakers in lowering the rates further at the next meeting this month.
David Dodge, a senior advisor at Bennett Jones and former Bank of Canada governor predicts that interest rates will “settle” around 3% in the coming years as Canada reaches a more “neutral” inflation rate.
Economists at TD Bank say the Bank of Canada’s decision to cut interest rates before the Federal Reserve will lead to a “big tailwind” for the economy. Economist James Orlando says Canadians are more susceptible to interest rate changes, with less disposable income. Lower rates will close the gap between Canada and the US.
The Bank of Canada reports that the number of homebuyers opting for variable-rate mortgages is on the rise. 12.9% of mortgages in the first quarter of 2024 tracked the BOCs policy rate. This is significantly higher than the 4.2% seen in the third quarter of 2023. However, these numbers are still far below what we saw in the pandemic when variable-rate mortgages were the majority.
The capital gains tax came into effect last week, despite pushback from some businesses and physician groups. The new rules will charge tax on two-thirds of capital gains for companies and individual taxpayers with gains over $250,000. Primary residences are still exempt as well as some other small business exceptions.
Canadian housing starts reached the highest level in seven months. Construction began on 264,506 (annualized) units in May according to the Canada Mortgage and Housing Corporation. This is up by 9.7% from last year and was primarily driven by townhouse, apartment, and condo construction in Ontario and Quebec.
A Look at What’s to Come
Summer is in full swing along with the third quarter of 2024. Odds right now are at about 60% that there will be another rate cut at the next Bank of Canada meeting on July 25. Despite the latest surge in inflation, experts are still predicting multiple rate cuts this year. We will wait to see what happens later this month, but further rate cuts in July and September can set the stage for a very busy fall market.
Although sales are about 25% slower than last year, there is still plenty of activity. Many buyers are approaching us to start the process of finding a home. Buyers are looking to ‘time’ the market, which is often a poor strategy for the average buyer. The best time to buy was November/December of last year when prices were at their lowest. The next best time is right now. With rates going down, prices will go up. Additionally, record population growth and record lows in home sales show a lot of pent-up demand that buyers should capitalize on as soon as they can.
We are also seeing many sellers listing their homes with us. There hasn’t been this much inventory in the market for a long time. Many sellers have been sitting on the sideline waiting to sell or perhaps they attempted to sell over the past 2-3 years but couldn’t achieve their desired outcome. Right now, homes priced correctly are selling quickly, and for close to asking, a number of our properties continue to garner multiple offers and sell for over list price (one home this month sold in 7 hours!). Our recommendation is to get into the market sooner rather than later.
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.
