SUPPLY LEVELS IMPROVE OVER LAST YEAR’S RECORD LOW. PACE OF PRICE ADJUSTMENT IS SHOWING SIGNS OF SLOWING
Hamilton, ON (December 1, 2022) –The REALTORS® Association of Hamilton-Burlington (RAHB) reported 672 sales of residential properties across the RAHB real estate market area through the Multiple Listing Service® (MLS®) System in November 2022. The number of real estate sales were down by 13 per cent from October 2022 and down by 42 per cent compared to November 2021. There were 1,248 new listings in November 2022, which was down 21 per cent from October 2022, and compared to November 2021, there was an increase in listings of nearly two per cent. The benchmark price for residential properties across the RAHB market area was $830,900, down 0.7 per cent from October 2022, and down nine per cent compared to November 2021. There were 3.2 months of inventory in November 2022 compared to 3.1 months in October 2022.
“The RAHB market area has seen some much-needed improvements in supply levels allowing for more choice and negotiation power for buyers and the levels are more consistent with long-term trends for November. It is important to note that while shifting conditions have caused prices to trend down from the peak, the pace of monthly decline has eased over the past several months. Overall, residential prices are still significantly above levels reported prior to the pandemic.”Lou Piriano, RAHB President
November sales continue to ease as some purchasers put their buying decisions on hold. Year-to-date sales have fallen to the lowest level seen in over a decade. The same pullback was not seen in new listings, and inventory levels have generally improved compared to the lows reported last year. The shift has caused the months of supply to push above three months in November.
While levels are far higher than the record lows reported over the past several years, they remained well below the November record high of over eight months, set back in 2010. While underlying long-term fundamentals regarding supply challenges have not dissipated, the recent pullback from purchasers has led to persistent downward pressure on home prices since March this year. As of November, the benchmark price totaled $770,600, over nine per cent lower than last year’s levels, but still well above prices reported prior to the pandemic.
Easing sales occurred across all regions in November, contributing to the year-to-date sales decline that ranged from a low of 38 per cent in Hamilton West to a 21 per cent decline in Flamborough. However, Flamborough also reported the most substantial gains in new listings and having that supply choice likely prevented a more significant pullback in sales activity.
The adjustments in demand have supported shifts away from the sellers’ conditions reported across all regions last year. All areas have also reported a reduction in price relative to previous highs. While the easing prices have, in some cases, resulted in a year over-year decline, on a year-to-date basis, the average price has remained higher than last year’s levels across all the regions.
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