Image: Residential Property in Hamilton
The real estate market in Hamilton has been experiencing some interesting trends. According to the REALTORS® Association of Hamilton-Burlington (RAHB), there has been a decrease in the sales of residential properties for the second consecutive year. In this article, we will delve into the market statistics for December 2023 and analyze the key highlights.
Decline in Sales and Increase in Inventory Levels
RAHB reported that the sales of residential properties decreased by 11 percent compared to the same period last year. Additionally, the sales were nearly 30 percent lower than the long-term trends for the region. On the other hand, there was an increase in inventory levels in 2023. The market conditions remained relatively tight in the first half of the year due to a pullback in new listings. However, the second half witnessed a surge in new listings, resulting in a drop in the sales-to-new-listings ratio and driving inventory gains.
The change in supply had a direct impact on the prices. As supply increased in the latter half of 2023, downward pressure was observed on home prices. The average benchmark price fell by almost nine percent compared to the previous year, erasing some of the gains reported in 2022. Nevertheless, prices still remained consistent with 2021 levels and were significantly higher than pre-pandemic times.
Image: Residential Activity and Prices in December 2023
Residential Activity in Hamilton
In 2023, a total of 6,131 sales of residential properties were recorded in the Hamilton area, representing a 12 percent decrease from the previous year. The decrease was primarily driven by higher house prices over $800,000 and the impact of higher lending rates on buyers' purchasing power. However, in December 2023, there was a slight increase of 0.7 percent in sales year-over-year. The number of new listings in the Hamilton real estate market also saw a modest increase of 12.7 percent compared to the previous year. The average residential property price in Hamilton in December 2023 was $760,376, reflecting a 1.2 percent increase from the previous year.
The second half of 2023 saw a surge in new listings in the Hamilton region. However, the annual new listings were lower than those reported in 2022. The combination of decreased sales and increased new listings led to a decrease in the sales-to-new-listings ratio in the second half of the year, resulting in growth in inventory and increased supply.
Image: Property Types in the Hamilton Real Estate Market
Property Types in the Hamilton Real Estate Market
The market conditions impacted all property types in Hamilton. Sales eased for all property types in December 2023, while inventory levels increased for almost all property types. This caused the months of supply to trend higher compared to 2022. The annual benchmark price experienced a decline of almost eight percent in the row sector, while the detached, apartment, and semi-detached sectors saw an increase of nearly nine percent.
Here's a breakdown of the average prices for each property type in December 2023:
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Detached:
- Average Price: $822,234 (+0.5%)
- Sales: 206 (+3.5%)
- New Listings: 207 (-11.5%)
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Semi-Detached:
- Average Price: $668,039 (-4.5%)
- Sales: 19 (+5.6%)
- New Listings: 14 (-12.5%)
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Row:
- Average Price: $667,709 (0.0%)
- Sales: 53 (+15.2%)
- New Listings: 51 (+4.1%)
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Apartment-Style:
- Average Price: $428,524 (-8.6%)
- Sales: 17 (-41.4%)
- New Listings: 36 (-30.8%)
Image: Regional Summary for the Hamilton Real Estate Market
Regional Summary for the Hamilton Real Estate Market
The Hamilton real estate market saw a slowdown in sales and new listings across all areas in 2023, except for Hamilton East and Dundas. While there was an increase in inventory, sales were slower compared to new listings, resulting in an overall increase in supply.
The Hamilton Mountain area had the highest number of sales in December 2023, with a total of 70 sales. Although this marked a small increase of six percent compared to the previous year, there was a slight decrease from the previous month's 95 reported sales. The Hamilton Mountain also saw a modest increase of 6.3 percent in new listings, with a total of 67 listings. The average price of a residential property in December was $707,996, reflecting a decrease of 3.3 percent from the previous year.
Stoney Creek reported the second-highest number of sales in December 2023, with 53 sales. This represented an increase of 8.2 percent compared to the same period last year. The average residential property price in this area was $767,974, reflecting a two percent decrease from the previous year.
Hamilton Centre had a total of 38 sales in December 2023, representing a 13.6 percent decrease compared to the previous year. The average price of a residential property in this area was $495,645, reflecting a 13.3 percent decrease from the previous year.
Image: Average Residential Price by District in December 2023
Average Residential Property Price by District
The map above provides a visual representation of the different areas within the Hamilton real estate market. Each sub-area has its average price, with a percentage indicating whether it saw an increase or decrease in December 2023.
The Hamilton Mountain area comprises sub-areas 15, 16, 17, 18, 25, and 26. The breakdown of the average residential sale price for each sub-area is as follows:
- Area 15: $774,289 (+8%)
- Area 16: $744,840 (-3%)
- Area 17: $636,581 (-1%)
- Area 18: $767,293 (-11%)
- Area 25: $669,633 (+7%)
- Area 26: $593,233 (-22%)
Stoney Creek consists of sub-areas 50, 51, and 52. The average residential sale price for each sub-area is as follows:
- Area 50: $790,738 (+2%)
- Area 51: $740,934 (-2%)
- Area 52: $870,000 (-21%)
Hamilton Centre comprises sub-areas 13, 14, 20, 21, and 22. The average residential sale price for each sub-area is as follows:
- Area 13: $493,444 (-23%)
- Area 14: $404,562 (-19%)
- Area 20: $464,045 (-5%)
- Area 21: $460,250 (-3%)
- Area 22: $692,750 (-7%)
The map provides valuable insights for those looking to buy or sell in specific areas of Hamilton, helping them understand the potential listing prices or affordable areas.
Summary of Statistics for the Hamilton Real Estate Market
In summary, there were a total of 296 sales of residential properties within the Hamilton real estate market area in December 2023, representing a slight increase of 0.7 percent compared to the previous year. The number of new listings also saw a small decrease compared to the previous year. The average residential property price was $760,376, reflecting a 1.2 percent increase from the same time last year. Overall, there were 6,131 sales of residential properties in the Hamilton real estate market in 2023, a 12 percent decrease from 2022.
"Lending rates have not been at these levels in two decades, which is weighing on housing demand. 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 percent of supply," says Nicolas von Bredow, President of RAHB.
For more in-depth information and a comprehensive analysis of these statistics, refer to the Hamilton Real Estate Statistics for December 2023.
If you have any questions about the Hamilton real estate market or want to learn more about the selling and buying process, don't hesitate to reach out to our knowledgeable and professional sales representatives at Judy Marsales Real Estate Ltd., Brokerage. With three convenient locations in Locke Street South, Westdale, and Ancaster, our team is ready to assist you in achieving your real estate goals.
