Hamilton | Burlington Real Estate & Housing Market - Update May 2023

The housing market in the Hamilton-Burlington region has been grappling with a volatile equilibrium as higher sales confront an ongoing shortage in inventory. As reported by the REALTORS® Association of Hamilton-Burlington (RAHB), May 2023 witnessed a 12% increase in home sales over the previous month and a 3% increase compared to May 2022, led primarily by Hamilton, Niagara North, and Burlington. The upturn in sales coincides with a significant drop in listings, down by 25% year-over-year, maintaining pressure on the market.

While an impressive 32% surge in new listings was recorded in May, the numbers remain well below average for this time of the year, exacerbating the supply-demand imbalance.

The result is a tighter market, with months of supply falling from 1.7 in May 2022 to 1.5 this year. The impact of this squeeze is reflected in home prices. The unadjusted benchmark price across the RAHB market area was $877,100 in May, marking a modest 1% price increase over April, despite being 11% lower than May 2022. The average home price in the Hamilton-Burlington region for May 2023 was $884,083, representing a slight 0.5% decrease from April but a substantial 10.4% decrease year-over-year.

Digging deeper into regional variations reveals differing experiences. While Burlington remains the most expensive market in the region, Hamilton's average home price for May 2023 increased by 0.9% compared to April but decreased by 9.7% year-over-year. In contrast, given their smaller market size, Haldimand County and Niagara North have witnessed a greater fluctuation in sales and average prices.

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Different property types saw varying degrees of price fluctuations. For instance, detached homes recorded an average selling price of $891,751 in May 2023, a decrease of 1% from April. In contrast, condo apartments experienced a month-on-month price increase of 6.5%.

Despite the recent increase in sales, the market continues to be constrained by a lack of inventory. New listings in Hamilton decreased by 25% year-over-year in May 2023, contributing to an active listings count of just 1,114. Hamilton's housing market conditions have consistently favored sellers, with the sales-to-new-listings ratio (SNLR) exceeding the 60% mark since February.

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In recent years, Hamilton’s housing market has been one of the fastest-growing in Canada, attracting many first-time homebuyers and migrants as a more affordable alternative to Ontario's more expensive regions. However, recent policy rate hikes and increased mortgage rates have brought about a decrease in home prices. Although this development has improved home affordability, higher mortgage payments have offset some of these gains.