HOME PRICES TREND UPWARDS FOR THE FIFTH CONSECUTIVE MONTH – MAY 2023 REAL ESTATE MARKET REPORT
SALES TO NEW LISTINGS RATIO KEEPS CONDITIONS BALANCED
The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1,254 sales in May – Real Estate Market Report. This represents a 12 per cent increase in homes sold over the previous month and a three per cent increase in sales compared to May 2022. The three per cent year-over-year increase in sales was driven by stronger home sales in Hamilton, Niagara North and Burlington. New listings remain well below the levels traditionally reported this time of year. However, listings rose 32 per cent over the previous month, with 2,031 new homes listed in May. See April’s Real Estate Market Report to see the change Month to Month.
With 1,860 units available in May, inventory remains lower than what was available last year and 25 per cent below long-term trends for the month. Rising sales and lower inventories caused the months of supply to fall from 1.7 months in May 2022 to 1.5 months this month.
“Higher lending rates have impacted sales. However, lower inventory levels are preventing the market from becoming oversupplied and are likely contributing to some of the recent monthly gains we are seeing in home prices. While prices remain below last year’s peak, the recent gains have helped support more confidence amongst both buyers and sellers.”
Nicolas von Bredow, RAHB President.
The unadjusted benchmark price in May was $877,100 across the RAHB market area. This is just shy of a one per cent price increase over the previous month and 11 per cent lower than May 2022. Even with the adjustments in 2022, May prices remain higher than levels reported throughout most of 2021.
REAL ESTATE MARKET SALES BY NEIGHBOURHOODS
Year-to-date sales eased across all areas of Hamilton. The most significant declines in sales occurred in Hamilton East and Flamborough. Some of the slower sales activity in Hamilton East is likely due to a steep decline in new listings
and inventory levels. When considering both the adjustments to sales and inventory levels, Hamilton Mountain is seeing some of the tightest conditions compared to the other areas within the Hamilton region.
GET LIVE STATS NOW FOR YOUR NEIGHBOURHOOD
PROPERTY TYPES
Year-over-year sales growth this month was mostly driven by gains for row and apartment-style properties. Detached sales remained stable in May but are well below typical levels, as higher-priced properties are less affordable to buyers due to higher lending rates. In addition, inventory remains lower than the previous year and long-term trends as new listings have slowed across all property types.
However, the detached sector remains relatively balanced, with a sales-to-new-listings ratio of 56 per cent. The unadjusted detached benchmark prices rose over $6,000 this month to $869,600. This is a significant gain from the $806,000 reported in January but still below the peak levels seen in early 2022. It is noteworthy that recent price gains are comparable to what was reported at the end of 2021.