Hamilton home sales, prices see major drop in February
Published March 3, 2023 at 1:16 pm
Hamilton saw a dramatic year-over-year drop in home sales and prices last month.
According to the latest Realtors Association of Hamilton-Burlington (RAHB) market report, February closed out with 464 sales in the region, 40 per cent less than the same time the previous year.
“Sales did improve for lower-priced properties, but it was not enough to offset the declines occurring for homes priced above $800,000,” according to the report.
The benchmark sale price of a home in Hamilton last month was $800,584 — a 21.6 per cent drop compared to Feb. 2022.
While year-over-year stats have seen a big shift, for the second month in a row, unadjusted benchmark prices trended up, reaching $773,500.
“This may indicate that prices are starting to stabilize compared to the unprecedented prices in Feb. 2022,” according to RAHB.
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New listings relative to sales prevented significant monthly inventory gains. While inventory levels are 128 per cent higher than last year’s record lows, they are still below levels reported at this time of year pre-pandemic.
RAHB president Lou Piriano says demand at the lower end of the market is increasing as higher interest rates impact affordability and attainability.
“Buyers have more options than they did a year ago and are less likely to compete in unfavourable market conditions,” said Piriano. “Sellers at the high end of the market appear reluctant to sell, presumably because to move and take on a new mortgage rate could equal a higher monthly payment.”
While prices are 21.6per cent below last year, all gains are not lost, as current home prices are well above pre-pandemic levels.
Meanwhile, the average home is now spending 31.2 days on the market., compared to just ten days during the same period last year.
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