According to the Realtors® Association of Hamilton-Burlington (RAHB), there were 1,031 home sales in the region in the month of March. This was down about 33% over the previous year and only slightly slower than pre-pandemic levels. New listings in the area are also down.
Although sales and new listings are up month-over-month, supply is still low. The RAHB reports that buying conditions might not be as tight as they were in 2022, which has resulted in a more stable market.
Home prices in the area were 21% down over last year, however, the unadjusted benchmark price hit $835,800 in March, marking the third month in a row where prices increased.
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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 | 624 | -33.8% |
| New Listings | 928 | -39.9% |
| Active Listings | 1,019 | 41.3% |
| Months of Inventory | 1.6 | 113.6% |
| Average Price | $793,241 | -20.9% |
| Median Price | $740,000 | -19.6% |
| Average Days on Market | 27.6 | 243.3% |
Burlington Market Activity
| Variable | 2023 | Difference |
|---|---|---|
| Sales Activity | 240 | -31.6% |
| New Listings | 332 | -41.3% |
| Active Listings | 296 | 23.8% |
| Months of Inventory | 1.2 | 81.1% |
| Average Price | $1,051,488 | -19.6% |
| Median Price | $966,000 | -27.3% |
| Average Days on Market | 22.4 | 206% |
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
Hamilton sales were down 33.8% year-over-year in March with 624 sales reported through the MLS®. Burlington had 240 sales in March, which was down 31.6% year-over-year.
New Listings
New listings in Hamilton were also down year-over-year in March. With 928 new listings in Hamitlon and 332 new listings in Burlington, both cities were down 39.9% and 41.3% respectively.
Active Listings
Active listings, also known as “Inventory” was up 41.3% in Hamilton last month with 1,019 properties. Inventory in Burlington was up 23.8% last month with 296 properties.
Months of Inventory
Months of inventory is typically used as a measure of market conditions. Anything above 3 months is considered a buyer’s market, and anything below is typically considered a seller’s market. In Hamilton, months of inventory was up 113.6% last month with 1.6 months. Burlington months of supply was also up 81.1% from last year with 1.2 months of inventory.
Average Days on Market
Average days on market in both cities are up considerably. In Hamilton, the average days on market is 27.6, which is up 243.3% over last year. Burlington average days on market was up 206% over March 2022 with 22.4 days.
Average Prices
Average prices in the RAHB region are up month-over-month, but still down year-over-year from the peak of the market last year. The residential average price in Hamilton was $793,241 in March, down 20.9% over last year. Burlington prices saw a similar decline. The average home price in Burlington is $1,051,488, down 19.6% over March 2022.
In the News
With a new Bank of Canada policy rate decision coming this week, many economists and traders are expecting to see the Central Bank hold interest rates for a second consecutive month. Early reports from Statistics Canada show that despite interest rate increases last year, the country’s GDP actually grew 0.3% in March, following a similar expansion in February. These numbers are stronger than initial projections and do suggest that Canada’s economy is holding up better than expected.
A new “cooling off period” for the purchase of new home sales could be coming for Ontario homebuyers. The provincial government is considering passing a new law to give buyers time to cancel the purchase of a new home. The Condominium Act currently exists, giving new condo buyers 10 days to cancel on their purchase, but no such act exists for new freeholds. If passed, this new law would provide better consumer protection for homebuyers.
The federal government is now walking back on some of the restrictions on foreign buyers. The ban, which came into effect on January 1 of this year would restrict non-Canadians from buying residential properties. However, now the government has amended the ban to allow non-Canadians who are here on a work permit or otherwise authorized to work in Canada to buy a home. Non-Canadians and foreign businesses can also now buy residentially zoned vacant land or residential property if the intention is to develop it.
A new $5.7 million project has been approved by Hamilton City Council to help repair 476 CityHousing units that sit vacant due to their condition. The project is more cost-effective than building new units and the work is expected to be completed in Fall of 2024.
A Look at What’s to Come
Although numbers are down over last year’s peak of the market, all current signs point to a more stable 2023 with conditions that fall in-line with pre-pandemic levels. Prices are lower than they were last year, but still up significantly over 2019.
Buyers are regaining confidence in the market, which is compounded by decreased rates for fixed mortgages. Competition remains high and properties are continuing to sell in multiple offer scenarios.
Low inventory levels and rising month-over-month prices create a favourable environment for sellers. And move up seller/buyers specifically should act 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 to get started.
