, / 288 0

Hamilton Real Estate Market Feeling the Effects of Regulatory Change

SHARE
Hamilton Real Estate Market Feeling the Effects of Regulatory Change
3 min. read

The Hamilton real estate market is historically tied closely to the Toronto market. So, when regulatory changes aimed at cooling hot markets like Toronto come into effect, they can have a simultaneous, but not always parallel, effect in Hamilton. Throughout the Hamilton-Burlington real estate area, this trend is certainly proving true this spring.

Throughout the entire area, there were 1,317 sales in the month of May. This is 27% fewer than the 1,804 sales in 2017.  In Hamilton proper, there were 702 sales in May. This is 26.7% less than the 957 sold in 2017. The decline in sales was mostly focused on detached homes, where the drop was a large 30.2%. In contrast, condo sales only declined 15.4% on a year-over-year basis.

Listings Also Dropping in Hamilton

With a lack of demand and slowly declining prices, it should come as no surprise that fewer people are trying to sell their homes in Hamilton. During May of this year, owners listed 1,298 homes for sale on the market. In 2017 during May, there were 1,665 homes listed for sale.

This 22% decrease in the number of new homes for sale has not been enough to compensate for the ongoing months of slow sales in the city. Thus, despite decreasing new listings, total inventory for the city is actually growing. At the end of the month there were 1,584 homes listed for sale in Hamilton. This represents a year-over-year growth of 24.4%, but it still indicates that housing supply is tight in Hamilton.

Average Sale Prices Also Trending Downward

The average sale price of a home in Hamilton this May was $515,583. This was a year-over-year decline of 5.1%. The average price of a condo in the city was $362,522 during the month, while detached homes sold for an average of $550,370. It is also worth noting that homes are staying on the market much longer this spring than they were at this time last year. The average time on the market for all home types was 27 days this May. This was 107.7% longer than the period homes were staying unsold for at the same time last year.

The Hamilton real estate market is definitely in a state of transition at the moment as all of southern Ontario moves towards a new equilibrium. However, certain predictable trends are also holding true. There has been the typical uptick in activity as the seasons turned from winter towards spring, and there is reason for optimism for many people in Hamilton. Overall, changes to the market should help to make it more accessible for homebuyers to find the right home for themselves and their families.


 

 

Leave A Reply

Your email address will not be published.