House prices up close to 6% in Hamilton, but average still well under $1 million
Published February 5, 2024 at 4:38 pm
Prospective homeowners hoping to purchase a home in Hamilton this year might be pleased to hear that while prices are up year-over-year, the average home price in the city sits at $794,982–well under the GTA-wide average home price of $1,126,604 (which was the average in December 2023).
The Realtors’ Association of Hamilton-Burlington (RAHB) recently announced that sales and prices are up from January 2023. RAHB’s report indicates that 383 homes in the city changed hands last month, a five per cent increase over last year. Prices are also up 5.8 per cent.
According to the report, 671 new homes hit the market last month.
RAHB’s report said that while sales are up, they are still below long-term trends in the city.
As far as inventory is concerned, more houses are available for buyers than were available this time last year, with 1,102 homes available for sale–up 10.9 per cent. That said, buyers have just under three months’ worth of inventory to choose from (up 5.7 per cent over last year), which is more in line with pre-pandemic levels typically observed in Hamilton. The market is considered balanced, neither favouring buyers nor sellers.
The report suggests that houses are taking longer to sell this year, with homes sitting on the market for 48.9 days on average–up 32.5 per cent year-over-year.
As far as housing types go, detached houses remain the most expensive housing type, with an average price of $876,675. Semi-detached house prices hit $746,923 last month, while townhouses cost an average of $675,963. The average price of a condo hit $468,367 in January.
According to the report, townhouses experienced a slowdown in sales last month, while gains were reported in the detached, semi-detached and condo sectors. With more inventory in the condo market, some downward pressure on prices has been observed, with prices dropping 11 per cent year-over-year.
“Compared to the previous year, the unadjusted benchmark prices reported the most substantial gains in the semi-detached and detached sectors while remaining stable for row homes and declining for apartment condominiums,” the report reads.
The report also points out price differences between neighbourhoods, noting that the average house price sits above $1 million in Flamborough, Dundas, Ancaster and Waterdown.
The most affordable neighbourhoods include Hamilton-Centre, Hamilton-East and Hamilton-West.
RAHB says slow sales across its entire catchment area (which also includes Burlington and parts of the Niagara region) aren’t surprising, as borrowing costs remain high in the wake of multiple interest rate hikes.
“It is not a surprise that sales remained below long-term trends, given higher interest rates,” Nicolas von Bredow, president of RAHB, said in a statement.
“And while inventory levels are also higher, they are still considered low when you look beyond the past decade that struggled with low inventory.”inthehammer's Editorial Standards and Policies advertising