Condo prices drop to $454K in Hamilton, house prices up

The latest real estate report is in and it shows condo prices decreasing in Hamilton while house prices are up slightly.

In September, the unadjusted benchmark price for all home types fell to $854,200, a monthly decline of one per cent for homes in Hamilton and Burlington, according to a report from the Realtors Association of Hamilton-Burlington.

But despite the monthly decrease, levels remain higher than the $838,300 reported in September 2022 and the $581,500 reported pre-pandemic.

Condo apartments are the only home type that have decreased in price compared to last year at this time.

In Hamilton, the benchmark price of condo apartments is $494,500, down seven per cent compared to September 2022 when the benchmark was at $531,600.

Semi-detached homes saw the biggest increase, up three per cent to $757,000.

Detached homes are up two per cent to $848,300.

And row houses are up one per cent to $673,500.

A decrease in detached and row-style properties drove year-over-year sales declines in September, the report notes. New listings rose across all property types, causing inventories to increase across all property types, with the most significant gains occurring in the apartment condominium sector.

Overall, slower sales and increased is impacting prices, the real estate association notes.

The Bank of Canada interest rate hikes, which is increasing mortgage costs, is behind the slower market.

“Increases in lending rates have prompted prospective buyers to delay purchasing decisions,” said Nicolas von Bredow, Realtors Association of Hamilton-Burlington president.

“Lending rates may have sparked anxiety among existing homeowners, motivating them to list their properties. A surge in new listings, relative to sales, has led to a pronounced rise in overall inventory levels.”

Hamilton reported 373 home sales, down from 501 last month and a 17 per cent decline over last year.

“September sales have not been this slow since 2010,” the report notes.

The full report from the Realtors Association of Hamilton-Burlington can be found here.