DECEMBER 2023 MARKET REPORT SHOWS SUPPLY LEVELS RISE IN 2023 AS DEMAND FOR HIGHER-PRICED HOMES FALL
The REALTORS® Association of Hamilton-Burlington (RAHB) December 2023 Market Report – for the second year in a row, a decline in residential sales. In 2023, sales were 11% lower than the previous year and nearly 30% below long-term trends for the region.
Inventory levels generally trended up throughout 2023. In the first half of the year, the pullback in new listings relative to sales prevented a rapid acceleration in inventory levels, keeping market conditions relatively tight. However, by the second half of the year, we started to see an uptick in new listings, causing the sales to new listings ratio to fall, driving steeper inventory gains and causing the months of supply to push above four months.
Tighter conditions earlier in the year caused prices to trend up over the levels reported at the end of 2022. However, as supply increased in the latter half of 2023, we saw downward pressure on home prices. The average benchmark price fell by nearly nine per cent over the previous year erasing much of the gains reported in 2022. However, prices remain consistent with 2021 levels and are well above pre-pandemic.
DECEMBER 2023 MARKET REPORT – SALES BY NEIGHBOURHOOD
Hamilton reported 6,131 sales in 2023, a decline of 12% over 2022. The decline was driven by homes priced over $800,000 as higher lending rates weighed on purchasers. Although the Hamilton region saw some increases in new listings during the latter half of the year, the annual new listings activity remained below what was reported in 2022. Nonetheless, the gain in new listings combined with slower sales caused the sales-to-new listings ratio to fall in the later part of the year, driving more substantial inventory growth and pushing up the months of supply.
Supply gains in the latter half of the year caused prices to trend down from levels seen in the first half of 2023. The annual benchmark price decreased by nearly 10%, reaching $784,267. However, as of December, prices were still significantly higher than pre-pandemic levels.
Both sales and new listings have eased across all areas within the Hamilton region throughout 2023. Relatively slower sales compared to new listings has led to an increase in inventory in most of the region, with the exception of Hamilton East and Dundas.
DECEMBER 2023 MARKET REPORT – PROPERTY TYPES
Sales eased across all property types, with steeper declines occurring for detached and semi-detached properties. At the same time, inventory levels rose across most property types, causing the months of supply to trend up over 2022 levels. Increased supply weighed on prices across all property types. The annual benchmark price has decreased, ranging from a low of nearly eight per cent in the row sector to a high of roughly nine per cent in the detached, apartment and semi-detached sectors.
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