HOME PRICES TREND UP LEADING INTO SPRING – APRIL 2023 MARKET REPORT
SALES-TO-NEW LISTINGS RATIO CONTINUES TO RISE, SLOWING INVENTORY
The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1,071 sales and 1,527 new listings in April – Real Estate Market Report. This marks the first time since early 2022 that the sales-to-new listings ratio pushed above 70 per cent. The increase in sales placed a strain on the pace of inventory growth, causing supply levels to trend down compared to last month. There were 1.6 months of supply available in April, and while this is a marked increase over peak pandemic levels, it is significantly less than the over three months of supply reported throughout most of the latter half of 2022.
“The gains in lending rates impacted sales across the RAHB market area, but we also saw a shiftsays Nicolas von Bredow, RAHB President.
come from existing homeowners who were also reluctant to sell their home. In April, new listings coming onto the market were much lower than levels traditionally seen at this time of year, keeping inventories relatively low in our market, and placing upward pressure on home prices.”
Low supply and increased sales are supporting an upward shift in prices in the region. In April, the unadjusted benchmark price reached $868,800, reflecting the fourth consecutive month prices have increased. Prices are still below the unprecedented highs seen during the peak in 2022, but provide some reassurance as to where prices will stabilize.
In April, sales and new listings improved over earlier in the year and are consistent with seasonal expectations. With 644 sales and 930 new listings in the month, the sales-to-new listings ratio pushed up to 69 per cent, keeping inventories relatively stable at 1,022 units. While inventory levels are higher
than ultra low levels seen during the pandemic, they remain over 20 per cent lower than what is traditionally available in the market in April.
In April the unadjusted benchmark price reached $803,000, which is a significant improvement over January when the benchmark price sat at $754,000. While prices are nearly 16 per cent lower than the high levels seen last year, they are still much higher than pre-pandemic prices.
Sales have slowed in the higher-priced detached and semi-detached sectors when compared to last year and long-term averages. Relative affordability is likely driving buyers to seek out lower-price options. While sales did ease for apartment-style homes, the levels are consistent with long-term trends. Row properties were the only segment of the market to see sales activity improve compared to last year and are more consistent with long-term trends.
We are seeing fewer new listings across all property types compared to last year. This is causing conditions to tighten and prices to increase relative to earlier this year. While the price gains have not been enough to offset earlier declines, it does provide some reassurance that declines have stopped and point to a resilient spring.
REAL ESTATE MARKET SALES BY NEIGHBOURHOODS
Sales activity improved compared to last year in the areas of Ancaster and Glanbrook. Interestingly, Glanbrook is the only area that has seen sales rise above long-term trends and has not seen the same pullback in new listings. Hamilton Mountain is the only area that has seen conditions not only
tighten from earlier in the year, but from levels reported last year.
NEIGHBOURHOOD MARKET REPORTS
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