MARKET INVENTORY RISES TO PRE-PANDEMIC LEVELS
JANUARY 2023 BROUGHT PRICE GAINS AFTER 10 MONTHS OF DECLINE
Current inventory levels throughout the REALTORS® Association of Hamilton-Burlington (RAHB) market area are comparable to what we saw pre-pandemic. This is likely due to higher interest rates and a rise in new listings hitting the market. Inventory has increased across all price points, particularly the lower price ranges. The new year has shown an increase in sales of homes priced under $800,000 and supply options in that price range are better compared to last January. However, total home sales are down 26 per cent year over year.
“Low lending rates and the pandemic contributed to a surge in demand. Supply could not keep pace, and prices rose faster than expected. Higher lending rates and prices have impacted affordability and allowed the market to build supply levels back up to pre-pandemic levels,”
Lou Piriano, President of the REALTORS® Association of Hamilton-Burlington (RAHB).
Currently, we have a little less than a three-month supply of market inventory. While conditions are not as tight as they have been the past several years, we are also not dealing with the oversupply scenario we faced during the financial crisis. This will likely limit how much prices adjust from recent highs.
Across the RAHB market area, home prices are 20 per cent lower than they were at the start of 2022. However, after ten months of consecutive declines, benchmark prices increased over December. The unadjusted benchmark price was $809,800, below the $1,012,700 reported in January 2022, but well above the $602,700 reported at the beginning of the pandemic in 2020. This could potentially reflect a stabilization in prices.
Hamilton has experienced the slowest start to the year since 2011, with only 349 sales. In addition, there was an increase in new listings supporting inventory growth in the market. While inventory levels are Much higher than in the past two years, they are still low compared to pre-pandemic levels. Market conditions remain relatively balanced for homes priced below $800,000, while higher-priced properties are seeing a shift to buyer’s market conditions.
As of January, the benchmark price in the Hamilton region was $754,100, 21 per cent below January 2022 prices but slightly higher than last month. It is too early to say if this trend will continue, but it could be pointing to a more stable price environment. Prices in the region are still above pre-pandemic levels.
PROPERTY TYPES
Sales to new listings ratios fell over last year’s levels, ranging from a low of 42 per cent in the apartment sector to 59 per cent for row properties. Inventory levels are up across all property types. However, levels in the detached market are slightly lower than what is typical for January. January prices were up over the previous month except in the apartment condominium sector. Prices in all sectors remain down compared to January 2022. Year-over-year price declines have been more significant for detached and semi-detached homes, these categories also experienced the largest spike during the height of the pandemic. Nonetheless, prices for all property types remain above pre-pandemic levels.
January sales eased across most areas in the Hamilton region, but the pace of decline ranged area to Area. Flamborough saw the largest decline, partly related to the significant drop in new listings. Meanwhile, Glanbrook was the only areas to report sales growth. Both Glanbrook and Hamilton Mountain reported January sales that were relatively consistent with long-term trends for the area.
Across the board, there has been a shift away from the tight conditions reported last year. Sales-to-new listings ratios range from a high of 68 per cent in Hamilton Mountain to a low of 38 per cent in the Dundas area.
NEIGHBOURHOOD MARKET REPORTS
To view the specific area market reports, click the neighbourhood you are interested in below. You will find LIVE Statistics with links to active properties for sale.
You can get any update on the market based on your current address. This will give you an idea of what your home is worth, and we will include what is selling in your area. Also, get tips on how to increase the money in your pocket at closing. If you would like this update please give us a call at 905-308-1877 or reply to this email.
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