LOWER-PRICED HOMES ATTRACT THE HIGHEST SHARE OF SALES IN FEBRUARY
NEW LISTINGS DECLINE YEAR OVER YEAR
February 2023 Real Estate Market Report closed out with 765 sales across the REALTORS® Association of Hamilton-Burlington (RAHB) market area. With 37 per cent less than the same time the previous year. Much of the decline was seen with the higher end of the market, and homes priced below $800,000 represented the majority of sales.
“Demand at the lower end of the market is increasing as higher interest rates impact affordability and attainability. Buyers have more options than they did a year ago and are less likely to compete in unfavourable market conditions, Sellers at the high end of the market appear reluctant to sell, presumably because to move and take on a new mortgage rate could equal a higher monthly payment.”said Lou Piriano, RAHB President.
An increased hesitancy to list impacted the detached sector hardest. New listings fell to 1,203 in February, 27 percent below the same time last year. New listings relative to sales prevented significant monthly inventory gains. While inventory levels are much higher than reported last year, they are still below levels reported for this time of year before the pandemic.
For the second month in a row, unadjusted benchmark prices trended up over the previous month. This may indicate that prices are starting to stabilize. Prices in February 2022 were perhaps the most competitive of all time. This February, sales were over 22 per cent below last year. However, all gains are not lost as prices are still well above the under $600,000 price reported prior to the pandemic.
February 2023 Real Estate Market Report shows 464 sales in the region, 40 per cent less than the same time the previous year. Sales did improve for lower-priced properties, but it was not enough to offset the declines occurring for homes priced above $800,000. New listings relative to sales prevented significant monthly inventory gains. Inventory levels are 128 per cent higher than last year’s record lows. This is still below levels reported at this time of year pre-pandemic.
For the second month in a row, unadjusted benchmark prices trended up, reaching $773,500. This may indicate that prices are starting to stabilize compared to the unprecedented prices in February 2022. While prices are 22 per cent below last year, all gains are not lost, as current home prices are well above pre-pandemic levels.
Sales activity declined across all property types in February. Months of supply reduced across the detached, semidetached and row sectors; however, apartment condominiums saw a modest gain compared to January. Benchmark prices rose over the last month across all property types except apartment condominiums.
However, apartment condominium prices have declined significantly less compared to other property types, dropping only five per cent year over year. Detached home prices saw the largest year-over-year adjustment at nearly 24 percent. Despite the year-over-year decline, the recent shifts in price trends should help support a more stable price environment this year.
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