Hamilton has balanced housing market as prices slacken nationwide, new study finds

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Published September 1, 2023 at 5:13 pm

If you are looking to purchase a home, prices in Hamilton like many other cities have dipped, with Steeltown having a balanced real estate market once again.

According to a new report by real estate listings search and data platform Zoocasa, 23 of the markets it analyzed are balanced.

“This means that although inventory is tight in many of these markets, demand and supply are relatively balanced, however, it does not take into account the sideline buyers that are on the fence,” the report found. ” Many of these markets have shifted from the sellers’ market in the last year.”

Hamilton’s average home price was $847,087 this July. It had the fifth least expensive home price among 25 Ontario cities whose home prices are above the national average. Hamilton’s sales-to-new-listings-ratio was 42 per cent, making it a balanced market just like in July 2022.

Housing price growth has slowed nationwide following two interest rate hikes this summer. Consequently, buyers could benefit from increased inventory as supply rebuilds, according to the report.

Zoocasa calculated the sales-to-new-listings-ratio for 34 cities and regions to identify which areas of Ontario have the most competitive (sellers’ markets) and least competitive (buyers’ markets) real estate markets.

The sales-to-new-listings-ratio is calculated as the number of sales during July divided by the number of new listings. A higher percentage over 60 per cent means many homes were sold compared to homes newly listed (a seller’s market). A lower percentage under 40 per cent shows fewer homes were sold compared to homes newly listed (a buyer’s market).  Meanwhile, a ratio between 40 per cent and 60 per cent is a balanced market.

It cost an average $1,528,833 to buy a home in Oakville in July, making it the most expensive city in Ontario whose home prices are above the national average. However, it had a balanced market at 52 per cent. Last year, it was a sellers’ market at 60 per cent. Peterborough had the least expensive average home price at $749,394 with a balanced market (50 per cent) both this July and during the same period last year.

Niagara Falls is the most favourable market for potential home buyers in Ontario. The region’s sales-to-new-listings-ratio is just 39 per cent and the average price is $662,200.

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