House prices falling in Hamilton, but still above pre-pandemic levels

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Published January 3, 2024 at 3:56 pm

homes selling for less hamilton real estate

With several interest rate hikes putting pressure on prospective buyers, house prices in Hamilton haven’t climbed substantially year-over-year–but they remain higher than they were in the (already expensive) pre-COVID era. 

According to data recently released by the Realtors’ Association of Hamilton-Burlington (RAHB), the average price of a residential home (all home types combined) hit $760,376 in December 2023–up 1.2 per cent from December 2022. 

While prices have stabilized, the report suggests sales are down more dramatically. According to the report, Hamilton reported 6,131 sales in 2023, a decline of 12 per cent over 2022. 

RAHB says the decline was driven by homes priced over $800,000 and that while inventory has been improving (meaning more homes are available for sale), annual new listings activity in 2023 was lower than what was recorded in 2022. 

That said, the influx of supply on the market–which is good news for buyers looking for more variety–caused prices to trend down from the highs seen in the first half of 2023. 

“The annual benchmark price decreased by nearly ten per cent, reaching $784,267. However, as of December, prices were still significantly higher than pre-pandemic levels,” the report said. 

RAHB said sales are down across the board, with detached and semi-detached properties seeing the biggest declines. In December, 296 homes changed hands–up 0.7 per cent year over year. According to the report, 309 new listings hit the market (down 12.7 per cent from 2022), but since 1,179 homes are currently for sale, inventory is in better shape. There is currently four months’ worth of supply on the market, with homes taking an average of 38.9 days to sell. 

As far as home types go, the report says the average price of a detached house in Hamilton hit $822,354 in December–up 0.5 per cent year-over-year. The price of a semi-detached home hit $668,039–down 4.5 per cent. The average townhouse price came in at $667,709 (no change) and condo prices dropped 8.6 per cent year-over-year to hit $428,524. 

The average mobile home price in the city was $300,000 in December. 

“Lending rates have not been at these levels in two decades, which is weighing on housing demand,” Nicolas von Bredow, president of RAHB, said in the report. 

“What we saw in 2023 is that higher-priced detached and semi-detached properties were the primary drivers of sales declines. Sales improved for homes priced below $600,000, but this range only represents 20 per cent of supply.” 

 

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