June Real Estate Market Update: Navigating Changing Times in Hamilton

In June, the real estate market continued to experience a slowdown, with 835 sales recorded. This represents a decline from both the previous month and the same period last year, aligning with the trend of lower sales figures observed in recent years. This trend is evident across all property types and in every area within the region.

According to Nicolas von Bredow, Spokesperson for the Cornerstone Association of REALTORS®, “Higher interest rates and rising living costs have significantly impacted the housing market. Despite the recent rate reduction by the Bank of Canada, mortgage rates remain high, causing potential buyers to wait for further cuts or a shift in market conditions. Additionally, increasing supply levels have eased the urgency experienced during low inventory periods, relieving some pressure on home prices.”

New listings in June reached 2,048 units, marking an increase over last year. This influx of new listings has contributed to further inventory gains. Inventory levels for June rose compared to the previous month and were 54% higher than last year’s levels, which is well above the long-term trends for the month. These inventory gains were observed across all price ranges.

The rise in inventory relative to sales pushed the months of supply to nearly four months. This higher supply level relative to sales has eased some pressure on home prices. In June, the unadjusted benchmark price was $849,900, representing a year-over-year decline of over 2%. Despite this decline, the year-to-date average benchmark price has remained relatively stable compared to last year.

In Hamilton, sales of homes priced below $500,000 increased, but this was not enough to prevent a 7% year-to-date decline. New listings in June were higher than the levels reported last year but eased compared to last month’s levels. With 1,264 new listings and 495 sales, the sales-to-new listings ratio dipped below 40%, leading to rising inventories across all price ranges.

Higher inventory levels compared to sales have pushed the months of supply up to nearly four months. This additional supply has weighed on home prices. In June, the unadjusted benchmark price in Hamilton was $786,800, down from last month and nearly 3% below last June.

As the market navigates these changing times, it remains crucial for buyers and sellers to stay informed and adapt to the evolving conditions. At KV Real Estate, we are committed to providing our clients with the latest market insights and personalized guidance to help them make informed decisions.

Stay tuned for more updates and feel free to reach out to us for any real estate needs or questions.