With the Bank of Canada cutting interest rates to 4.75 per cent on June 5, it remains to be seen what the housing market will look like throughout the summer.
The latest update from the Realtors Association of Hamilton-Burlington (RAHB) says that sales activity in the region continues to be slow and the decline in sales has been accompanied by an increase in new listings.
The report notes that the region, which includes Hamilton, Burlington, Haldimand County, and Niagara North, saw 1,032 sales in May.
The number of May sales represents a 20 per cent decrease compared to 2023 and is 31 per cent below the long-term average for the month.
The report adds, “This decline in sales was evident across all property types and was significant enough to counterbalance the gains seen earlier in the year, resulting in a three per cent decrease in year-to-date sales.”
There was also an increase in new listings in May, resulting in a 56 per cent increase in inventory levels compared to May 2023.
Inventory levels are the highest in any month of May since 2018.
Nicolas von Bredow, President of RAHB, says that “escalating costs and higher interest rates are affecting consumer affordability, causing some potential buyers to pause their purchasing decisions.”
In regards to the City of Hamilton in particular, there were 637 sales in May which is an 18.3 per cent decline from May 2023.
There were also 1,425 new listings (up 14.5 per cent year over year), inventory stands at 1,830 units (up 57.2 per cent), there are now 2.9 months of supply (up 92.5 per cent), and listings spend an average of 22.8 days on the market (up 16.3 per cent).
As for prices, the report notes, “The increased supply relative to sales helped alleviate some pressure on home prices, particularly in the upper price ranges.”
Benchmark prices in Hamilton based on housing type were $860,300 for a detached home, $769,400 for semi-detached, $664,400 for a row house, and $467,600 for an apartment.
All prices have decreased year over year, but have increased since last month.
- Detached – $860,300 (down one per cent compared to May 2023)
- Semi-detached – $769,400 (down one per cent)
- Row – $664,400 (down two per cent)
- Apartment – $467,600 (down two per cent)
Sales activity and prices also vary considerably across the different areas within Hamilton.
For May 2024, the median price for the home listed within each area of Hamilton, from most affordable to least affordable were:
- Hamilton Centre – $528,000
- Hamilton East – $597,950
- Hamilton West – $720,000
- Hamilton Mountain – $720,000
- Stoney Creek – $829,950
- Glanbrook – $835,500
- Dundas – $860,000
- Waterdown – $966,750
- Flamborough – $1,012,500
- Ancaster – $1,175,000
With the Bank of Canada cutting interest rates to 4.75 per cent on June 5, it remains to be seen what the housing market will look like throughout the summer.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
