The REALTORS® Association of Hamilton-Burlington (RAHB) reported a record 3,208 new listings were processed through the RAHB Multiple Listing Service® (MLS®) System in May, which is 41.1 per cent higher than the same month last year and 34.8 per cent higher than the 10-year average. Sales were less than one per cent lower than the same month last year, and still 15.3 per cent higher than the 10-year average.
“Listings continue to be the story,” said RAHB CEO George O’Neill. “The difference is that two months ago we reported on the sustained low inventory of listings and this month we are talking about a record for new listings. The increase in listings suggests that homeowners have been watching the market, seen home values increase significantly over the last year or two, and decided to take advantage of those increases.”
Seasonally adjusted* sales of residential properties were 3.5 per cent lower than the same month last year, with the average sale price up 24.8 per cent for the month. Seasonally adjusted numbers of new listings were 37.9 per cent higher than May of 2016.
Overall residential sales of 1,745 units were 1.4 per cent lower than the same month last year. Residential freehold sales were exactly the same as May of 2016 while sales in the condominium market were 7.8 per cent lower than the same month last year.
“Sales remained steady through the month of May,” noted O’Neill. “With the increase in listings and steady sales, we appear to be moving toward more balance, which tends to be a healthier market overall.” The median price of freehold properties increased by 20.2 per cent over the same month last year while the median price for condominium properties increased by 22.3 per cent compared to the same period.
The average price of freehold properties showed an increase of 24.3 per cent compared to May of last year; the average sale price in the condominium market increased by 19.2 per cent compared to the same period. Average sale price is based on the total dollar volume of all properties sold through the RAHB MLS® System. Average sale price can be useful in establishing long-term trends, but should not be used as an indicator that specific properties have increased or decreased in value. Contact a REALTOR® for information about your area or property.
The average number of days on market decreased from 22 to 16 days in the freehold market and from 25 to 16 days in the condominium market, compared to May of last year. Compared to last month, average days on market rose from 14 days for freehold properties and from 15 days in the condominium market.
“The question I am asked most frequently is whether this change in the market relates to the Fair Housing Plan recently announced by the Ontario government,” added O’Neill. “Our members reported seeing a shift in the market even before the announcement. It’s possible that sellers read and heard that changes were coming and decided to act sooner rather than later. Sales remain strong, suggesting the Non-Resident Speculation Tax announced in April doesn’t seem to have had an influence in our area.”