House prices and sales down Hamilton-Burlington as region experiences weakest November in 13 years
Published December 5, 2023 at 10:34 am
The white-hot housing market is continuing to cool slightly in Hamilton and Burlington, according to data released by the Realtors Association of Hamilton-Burlington (RAHB).
While prices are still higher than the Canadian average of $656,625 at an unadjusted benchmark price of $805,700, RAHB’s report indicates prices in the region (the data for both cities is combined) are down three per cent month-over-month and year-over-year.
In Burlington, however, prices are up.
According to RAHB, the average price of a home in Burlington hit $1,035,904 in November–up 6.1 per cent from November 2022. The average price of a detached home sits at $1,350,843 and the price of a semi is $867,200. Townhouses cost an average of $788,974 and condos cost $621,889.
Year-over-year, detached home prices have climbed 7.7 per cent, while the average price of a semi-detached is down 17.2 per cent. Townhouse prices are down 3.2 per cent from November 2022 and condo prices are down 7.3 per cent.
The report says that after six months of gaining more inventory (more houses for sale), new listings slowed in November. That said, the market currently has about three months of supply for sale–higher than what is typically seen in Burlington this time of year.
The increase in supply for prospective buyers has moderated price growth.
“The shift to more supply relative to sales has placed some downward pressure on home prices. While some of the declines could be related to seasonal factors, the unadjusted benchmark price has again fallen below $1,000,000 as of November,” the report reads.
In Hamilton, the average price of a home hit $755,953 in November–down 0.7 per cent year-over-year.
A detached home’s average price is $841,212 and the average price of a semi is $628,558. Townhouses cost an average of $673,440 and condos cost $456,536. Year-over-year, detached home prices in Hamilton have risen 2.8 per cent, while the average price of a semi has declined 15.4 per cent. Townhouse prices are down 1.4 per cent from November 2022, while condo prices are down 12.5 per cent.
According to RAHB, inventory is also higher than in previous years–up 20 per cent year-over-year. In fact, the supply of homes for sale is the most robust it’s been since November 2012.
This is good news for buyers.
“As we see in the broader region, conditions tend to favour the buyer in the higher price ranges relative to more balanced conditions at the lower price points,” the report reads. “Overall, elevated supply levels have weighed on home prices, which have trended down relative to levels reported in the first half of the year. The unadjusted benchmark price reached $750,400 in November, a two per cent decline over last month and the previous November.”
As for the Hamilton-Burlington area as a whole, RAHB says the region experienced its weakest November in terms of sales since 2010. While condos and semi-detached homes were popular amongst buyers, fewer detached and townhouse units changed hands.
RAHB says year-to-date sales are down by 11 per cent over last year and are 30 per cent below the long-term trends.
The report says that new listings tend to come online less this time of year, and last month, 1,384 homes hit the market. With 2,728 homes available in Hamilton-Burlington, supply levels are 23 per cent higher than last year and 32 per cent above long-term November trends.
“Persistently high lending rates are not only impacting demand but have also supported gains in new listings over the second half of the year,” said Nicolas von Bredow, president of RAHB, in the report.
“Consumers are generally seeking out homes in the lower-price ranges. However, much of the recent growth in new listings has been driven by higher-priced homes creating buyer market conditions in the upper end of the market.”
The report says homes over $800,000 make up the majority of homes on the market. In Burlington, 138 homes changed hands last month–a 4.8 per cent decrease from last year. In Hamilton, 404 homes were sold–a decrease of 6.9 per cent.
Houses in Hamilton are sitting on the market for an average of 30 days, while homes in Burlington are sitting for about 29.3 days.inthehammer's Editorial Standards and Policies advertising