Hamilton Real Estate Market Update: May 2024

In May 2024, the Hamilton real estate market experienced a notable shift. Following earlier gains this year, sales slowed, leading to a four percent decline in year-to-date sales. This slowdown in sales was met with an increase in new listings, resulting in higher inventory levels and pushing the months-of-supply to nearly three months. Despite this rise in inventory across all property types, the most affordable properties within each category continued to face the tightest conditions.

Sales and Prices

Sales declined across all property types in May, with the most significant drops seen in higher-density homes. However, new listings increased for all property types, contributing to a lower sales-to-new-listings ratio and a subsequent rise in inventory levels. The sales-to-new-listings ratio ranged from a high of 50 percent for semi-detached homes to a low of 36 percent for apartment-style units.

While benchmark prices in May rose compared to earlier in the year, they remained slightly over one percent lower than the levels recorded in May of the previous year. Despite some monthly fluctuations, year-to-date prices have shown relative stability in 2024. Detached and semi-detached homes saw modest price improvements, whereas apartment-style units experienced a two percent decline in average benchmark prices.

Regional Highlights

Within Hamilton, the most notable decline in year-to-date sales was observed in Hamilton West. However, when looking at the broader Hamilton region, Flamborough and Dundas were the only areas reporting significant increases in sales compared to the previous year. Despite these variations in sales activity, all areas within the region saw an increase in inventory levels and months of supply.

Dundas, Hamilton Mountain, and Hamilton East reported the tightest market conditions, with just over two months of supply. Conversely, Flamborough faced a more relaxed market with a months-of-supply exceeding five months.

Conclusion

The Hamilton real estate market in May 2024 demonstrated a balancing act between slowing sales and increasing new listings. This dynamic has led to higher inventory levels and varied market conditions across different regions and property types. As the year progresses, it will be essential to monitor these trends to understand their impact on home prices and market stability.