As many of us know, the economy is currently experiencing high levels of inflation that have impacted virtually every industry – from groceries to paper to McDonald’s summer one-dollar drink days. Included in this is the Hamilton housing market which has seen the effects of inflation.
Here’s a snapshot of the Hamilton Burlington Real Estate Market where we will look at:
- Average sale price in different areas
- Average home price
- Looking Ahead
Hamilton Real Estate Market Report
As with many housing markets across Canada, Hamilton’s housing market experienced a significant bubble throughout 2020 and 2021. Hamilton specifically was one of the most overheated markets, as it experienced significant price growth and intense bidding wars that caused rates to skyrocket.
Housing prices around the Hamilton Mountain and the downtown area have been slowly declining back to pre-pandemic levels as the market cools. These lower average prices have a lot to do with the Bank of Canada’s policy rate hikes that significantly increased mortgage rates.
The Bank of Canada has been a major cause of the housing market shift in the Hamilton Burlington area and across the country. Currently, the rate is sitting at 4.5 per cent, leading to significantly higher lending rates for home buyers. High mortgage rates and interest rates often deter buyers from making home purchases while lower rates incentivize potential homebuyers.
Since the end of the housing bubble, Hamilton has seen more stable pricing as the market cools; however, activity and listings remain lower than typical levels in the pre-pandemic market.
A report by the Realtors Association of Hamilton Burlington (RAHB) breaks down home prices and housing market statistics in the different regions.
The Burlington market area has consistently remained the most expensive housing market in the Hamilton Burlington region. This area has seen reasonable sales activity and has an average home price of just over $1.1 million. This average price is a 7.1 per cent decrease from April 2022.
In Haldimand County (including Caledonia, Cayuga, Dunnville, and Hagersville), average house prices are around of $736,000, while Grimsby, West Lincoln, and Smithville sit at $816,000.
Because they are smaller market areas, Haldimand County and Niagara North often experience a greater fluctuation in sales, average prices, and other real estate statistics on a monthly basis.
In general, the Realtors Association of Hamilton Burlington report that inventory rates remain lower than the pre-pandemic levels that you would normally see during the spring.
There were 930 new listings and “the unadjusted benchmark price reached $803,000, which is a significant improvement over January when the benchmark price sat at $754,000.”
While we may see more price stability, home prices are still quite expensive, especially as higher lending rates continue to make for higher monthly costs.
Additionally, the inventory had 1,022 new listings this month which is 5.9% lower than the same period in the previous year. Compared to the buying conditions that caused a seller’s market and bidding wars among buyers, the supply levels in the Hamilton area seem to be a bit higher than the current housing demand which only saw 930 homes sold in the previous month.
Average Home and Sales Price by Property Types
To better understand the market in the Hamilton Centre, Mountain, Stoney Creek, and the rest of the RAHB market area, let’s take a look at the average sales price per property type.
The Realtors Association of Hamilton Burlington reported that the overall average price of residential property was $806,909, which includes semi-detached, row, apartment, mobile, and detached homes. This average residential price is a 14.3 per cent decline compared to 2022.
The average price of an apartment property is sitting at $497,248 and saw 67 sales with 117 new listings this month. The average price is 13.5% lower than last year.
Townhouses, or row residential properties, have also fallen significantly. The current average price of townhouses in the RAHB market area is $718,353 which is 12.8 per cent lower than last year.
Semi-Detached and Detached Homes
Detached and semi-detached properties alike have seen fewer sales this year and in the past month. Detached home prices are currently at $901,044 while semi-detached houses sit at $640,241. There were only 29 semi-detached homes sold last month while over 400 detached residential properties were sold in the RAHB market area.
While the report from the Realtors Association of Hamilton Burlington sees slightly slower market activity levels reported, there seems to be some hope that the market will recover in the coming months. As the Hamilton Burlington area continues to adjust to inflation and signs of a recession, we may see some home prices drop slightly in the coming months.
For first-time homebuyers and other buyers, lower home prices come as an advantage; however, the high mortgage rates are still deterring many from purchasing a home. For sellers, you might consider selling soon as prices might fall throughout the second quarter.
Whether you’re looking to buy, sell, or seek advice on your real estate activity, it’s best to work with professionals who know the area. The team at Voortman Realty has over 20 years of experience in the real estate industry and is known for their credibility when it comes to quality listings. Interested in working with us?