Home sales are down as balanced market returns to Hamilton-Burlington
Published July 6, 2022 at 8:21 am
The increased interest rate appears to be having an impact on the Hamilton-Burlington real estate market.
The Realtors Association of Hamilton-Burlington (RAHB) reported five and ten-year historical lows in property sales for June, signalling a return to a balanced market — when supply and demand are about the same — giving more leverage to buyers and reducing the likelihood of bidding wars.
Sales were down by 19.2 percent compared to May and 37.8 percent compared to June 2021 in the RAHB market area.
“Similar to May, sales activity in June was below the five and ten-year historical averages. This was the experience for all dwelling types and sub-regions across the area,” says RAHB President Lou Piriano.”In June, mortgage rates increased by 0.5 per cent, and as a result, some
potential buyers have likely delayed their purchase because they may be taking a ‘wait and see’ approach to the market or they can no longer qualify.”
The overall residential average sale price across the RAHB market area fell five per cent from May to $946,026, while the months of inventory climbed above the two-month mark for the first time in over two years.
“The increase in active listings signals a more balanced market where buyers have greater negotiation power and more options,” says Piriano.
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The average home sale in Hamilton last month was $863,016 and in Burlington, $1,250,673.
There were 689 sales of residential-detached properties in the RAHB market area reported in June, down 19.2 per cent from May, and down 35.3 per cent compared to June 2021.
The average sale price for detached properties across the RAHB market area was $1,054,851, down five per cent from May, and an increase of 7.5 per cent compared to June 2021.
In June, townhomes experienced the greatest sales drop from May’s figures in both the number of sales and new listings over all other property categories. The average sale price of townhomes came in at $752,874 in Hamilton and $892,044 in Burlington.
The average sale price of apartment-style properties had the biggest hit in June from all other property types with nearly a 13 per cent drop over May. The number of sales in this property type also dipped by 20 per cent, while the number of new listings introduced to the market did not fluctuate from May.
“With these two factors combined, apartment-style properties continue to have the highest inventory levels,” says Piriano.”This property type continues to be attractive amongst buyers and investors with the most affordable price point and choice available.”
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