The 1.7 per cent decrease in May was the third month in a row the average sale price for residential property in the RAHB market area went down. Photo credit: Pexels/Curtis Adams
On June 3, the Realtors Association of Hamilton-Burlington (RAHB) released its monthly real estate statistics for May 2022.
For the third month in a row, the average sale price for residential properties in the RAHB market area – which includes Grimsby, parts of West Lincoln, and most of Haldimand County – decreased on a month over month basis, sliding from $1,013,081 in April to $995,408 in May.
Though a continuation of the recent downward trend in prices, the 1.7 per cent price reduction in May was significantly less dramatic than April, which saw local residential properties sell for 5.6 per cent less than the previous month.
In all, sales were down by 5.1 per cent month over month, and down by 31.9 per cent compared to the year prior.
According to RAHB president Lou Piriano, the dip in sales and prices was likely the result of the Bank of Canada’s interest rate hikes and buyers having more selection, and thus greater negotiating power.
“Overall, sales activity was below typical May levels likely due to buyers sitting on the sidelines as mortgage interest rates continue to rise,” said Piriano.
“In May, the residential average sale price also dipped marginally from the previous month to $995,408, just below the million dollar mark, for the first time this year after holding steady since January 2022. However, as increased inventory comes to the market, buyers have more selection, which may also lend to further negotiation power.”
The average sale price for residential properties varied widely depending on area and property type. Prices actually went up everywhere but Hamilton proper (which made up the largest portion of overall sales).
In Hamilton, the average price across all property types dipped significantly for the second month in a row, going from $949,149 in April to $901,535 in May.
In Burlington, the average price slightly increased from $1,228,723 to $1,231,174. In Niagara North – Grimsby and parts of West Lincoln – the average sale price went from $1,080,942 to $1,141,374 on a month over month basis. While in Haldimand County, the price jumped from $794,095 in April to $870,664 in May.
The average sale price for detached properties across the RAHB market area in May was $1,110,298, down 2.2 per cent month over month.
The average sale price of both townhomes and apartment-style properties across the RAHB market area decreased month over month by 5.6 per cent to $817,253 and $669,477, respectively.
Established over a century ago in 1921, the Realtors Association of Hamilton-Burlington is the second largest real estate association in Ontario and the eighth largest in Canada. The organization has over 3,500 members and covers a geographic area of 2,500 square kilometres.
