The Realtors® Association of Hamilton-Burlington (RAHB) reported 653 sales in October as we experienced the second consecutive month of gains in new listings hitting the market.
There were 2,106 new listings in October, helping to maintain a low sales-to-new-listings ratio at about 31%. Inventory in the region has hit an almost 10-year high with 3,145 properties on the market in October.
In this month’s press release, RAHB president, Nicolas von Bredow said higher lending rates are beginning to weigh on homeowners, with many choosing to list their homes.
With inventory at its highest levels since 2011, we’re seeing almost 5 months of inventory contributing to a slight dip in prices. The unadjusted benchmark price in Hamilton-Burlington was $829,100, which is down approximately 3% over September and also slightly lower than October 2022.
However, prices remain higher than pre-pandemic values.
Are you subscribed to the St. Jean Report? Get weekly real estate news and insights delivered right to your inbox Subscribe here.
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 | 408 | -12.4% |
| New Listings | 1,244 | 29.2% |
| Active Listings | 1,868 | 28.1% |
| Months of Inventory | 4.6 | 46.3% |
| Average Price | $789,040 | -0.1% |
| Median Price | $716,900 | 0.3% |
| Average Days on Market | 25.4 | -12.1% |
Burlington Market Activity
| Variable | 2023 | Difference |
|---|---|---|
| Sales Activity | 137 | -19.9% |
| New Listings | 397 | 28.1% |
| Active Listings | 534 | 15.1% |
| Months of Inventory | 3.9 | 43.6% |
| Average Price | $1,159,114 | 6.0% |
| Median Price | $1,050,000 | 7.7% |
| Average Days on Market | 24.3 | -15.1% |
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 408 residential real estate sales in Hamilton in October, which is down 12.4% year-over-year. Burlington saw 137 sales last month, down 19.9% over October 2022.
New Listings
New listings in Hamilton were up by 29.9% with 1,244 new listings added to the market. Burlington saw similar gains with 397 new listings, which is up 28.1% over last year.
Active Listings
Inventory reached its highest level since 2011 last month for the Hamilton-Burlington region. In Hamilton, there were 1,876 active listings, up 28.1% year-over-year. Burlington had 534 active listings, up 15.1% over October 2022.
Months of Inventory
Months of inventory is often used as a measure to determine market conditions. Anything above 3 months is generally considered to be a “buyer’s market.” In Hamilton last month, there were 4.6 months of supply, which is up 46.3% over last year. Burlington had 3.9 months of inventory, which is also up 43.6% over 2022.
Average Days on Market
Despite rising inventory in both cities, the average days on market in Hamilton and Burlington were both down over last year. In Hamilton, the average days on market were 25.4, which is down about 12.1% over last year. Burlington had 24.3 days on market, which is down 15.1% over October 2022.
Average Prices
In Hamilton, the average residential price for October was $789,040, down about 0.1% over October 2022. In Burlington, the average price was $1,159,114, which is up about 6% over last year.
In the News
Canada’s economy is showing signs of slowing down. Statistics Canada recently reported that the labour market posted its weakest monthly gain in over a year and the unemployment rate reached a 21-month high at 5.7%. Analysts at RBC said the country has entered a “technical recession” amid reports that Canada’s GDP contracted in September. All these signs support the Bank of Canada’s decision to hold the interest rate steady last month.
The province of Ontario has announced it will scrap the provincial portion of the harmonized sales tax on construction costs for new construction purpose-built rental buildings. This comes after the federal government eliminated its portion of the tax to help incentivize more new builds.
The federal government also recently announced it will be subring increases to immigration targets in the coming years. This announcement came as a result of public outcry over how Canada’s immigration policy would impact the housing supply shortage.
A Look at What’s to Come
Following the trend of September, RAHB reported an increase in new listings through October. While this influx of new inventory aligns with our team’s predictions of a busy fall market, buyer hesitations due to borrowing costs are keeping things somewhat balanced.
With that in mind, most economists are predicting that interest rates will hold for at least 6 months so we will likely see a boost in buyer confidence through the fall and early next year. Therefore, homeowners who are looking to sell should begin the preparation process 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.
