AREA HOME PRICES TREND DOWN 0.45 PER CENT IN JUNE REAL ESTATE MARKET REPORT.
MODEST INVENTORY GAINS CONTINUE TO KEEP CONDITIONS BALANCED
The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1,115 sales in June – as per the Real Estate Market Report. This represents a decrease of 182 units sold over the previous month. Despite the month-over-month decline, sales are up 19 per cent over last year. The monthly pullback in sales was not met with the same level of pullback in new listings, which supported some modest inventory gains over the previous month. Still, inventory levels remain more than 20 per cent lower than long-term trends for June. The increase in new listings caused market conditions to ease slightly compared to the previous three months.
“Low inventory has been a challenge throughout the past several months. Inventory levels may continue to slowly increase as buyers pause to evaluate the impacts of recent interest rate adjustments,”
says Nicolas von Bredow, RAHB President.
Following five consecutive months of price gains, the unadjusted benchmark price across the RAHB market area decreased 0.45 per cent over last month to $873,100. This is a relatively insignificant decrease and remains much higher than prepandemic pricing.
Despite a minor decrease over last month, the real estate market report shows sales activity improved over the previous year’s levels. While higher lending rates have weighed on sales activity, limited supply choices are contributing to slower sales so far this year. The sales to new listings ratio in June fell to 55 per cent, with 1,173 new listings and 649 sales, which helped support modest monthly inventory gains.
Slower sales and an increase in listings pushed the months of supply up slightly to just under two months. The unadjusted benchmark price in June was $810,300, down $3,500 from May. Prices remain much higher than prepandemic levels, although they are down from the unprecedented peaks in 2022.
REAL ESTATE MARKET SALES BY NEIGHBOURHOODS
Year-to-date sales and new listings have slowed across all areas of Hamilton. Hamilton Centre and Flamborough have seen a decline in sales to new listings ratios over the previous year.
In Hamilton Centre, this has supported some monthly inventory gains, making it the only area to see inventory beginning to line up with long-term trends.
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PROPERTY TYPES
Gains in new listings contributed to year-over-year sales growth for row and apartment-style properties. Year-to-date sales have eased across all property types, except apartment-style properties did see sales rise above long-term trends.
Higher interest rates have driven consumers to look for more affordable homes. Within the detached market, sales declined at the higher price points but improved for homes priced below $800,000. Low inventory levels are keeping conditions tighter in the lower price ranges. Overall detached benchmark prices have remained relatively stable compared to last month but are nearly six per cent lower than levels reported in the previous year.
