Terminated property listings skyrocket as Hamilton housing market takes ‘sharp turn’

A century home in Durand was listed for $1,999,000 in late May. Two weeks later, it was delisted - only to appear weeks later for the price of $1,894,999.

A painted brick home in St. Clair was listed for $719,900 in early June. Three weeks later, it was delisted - and later re-listed for $674,900.

A one-and-a-half-storey home in Crown Point West was listed for $499,900 in early July. Days later, it was delisted - and popped back up at $549,900.

Each listing is distinct - they vary in condition, location, features as well as size.

But the situation playing out for all them is part of a pattern that's emerging across the Ontario housing market - including in Hamilton.

Sellers are listing their homes at one price, delisting them after no movement on the market and often coming back with a different price - whether that be lower or higher.

According to data provided to The Spectator, the Realtors Association of Hamilton-Burlington (RAHB) saw 1,648 listings in Hamilton cancelled over a three-month period between April 21 and July 21 of this year.

It's a 93.4 per cent increase from the same time last year, when 852 listings were cancelled, and a 220.6 per cent increase from that same time in 2020, when 514 listings were terminated.

Hamilton real estate broker Claire Barrett told The Spectator there are numerous reasons why listings are being terminated - it could be a tactic to get fresh eyes on an older listing, a conditional sale doesn't work out or just an outright suspension of the listing for the time being.

Bidding wars have also gone away, independent showings have decreased in demand and some buyers have been shut out due to the marked jump in interest rates, she noted.

It gets very difficult to differentiate," said Barrett. Especially when a market is as erratic as this one."

RAHB president Lou Piriano noted that the jump in cancellations could be skewed by the previous state of the market, which saw homes flying off the shelf."

However, the emerging trend comes as Hamilton's housing market continues to cool off after more than two years of red-hot growth.

Earlier this month, RAHB reported that the number of house sales in the region plummeted to 995 in June - falling by 19 per cent compared to May and nearly 38 per cent from the same time last year.

And for the third month in a row, the average sale price also decreased across all property types to $946,026.

However, Barrett said terminated listings are also a result of challenges sellers are facing due to their own expectations - which for some are that of this past February, which saw the average home prices for the region reach its peak of $1,104,163.

Sellers want what their neighbours down the street got even just 60 days ago," she said. But this has been a pretty sharp turn."

The number of cancelled listings isn't the only statistic that's on the rise in Hamilton, according to the association. Data provided to The Spectator also shows that the number of price adjustments - whether they be up or down - are also increasing.

The association saw 1,488 price changes over a three-month period between April 21 and July 21 of this year.

It's a 118.5 per cent increase from the same time last year, when 681 prices were adjusted, and a 135.4 per cent increase from that same time in 2020, when 632 prices were changed.

Barrett said as the market continues downward, pricing has become a moving target" - so much so that comparable property sales even 30 days old are too dated to look to.

If sellers and their agents aren't prepared to get ahead of the market, they end up chasing it down," she said.

It's very uncomfortable for a lot of sellers," said Barrett, noting that competitive pricing no longer works. And a lot of the time, they could end up netting less than if they had priced it properly in the first place."

And with bidding wars on the outs and power going back to buyers, the number of properties selling for over asking in the Hamilton area has plunged.

Barrett said back in February, there were weeks where 80 per cent of homes in the region went for above listing price - now that number is running between 20 to 40 per cent of sales, week to week.

She added that buyers are also looking at presentation of homes more and even just one sale in the neighbourhood can change buyers' perceptions entirely on what they think they should pay.

This market has changed so dramatically," said Barrett. And a lot of it has been out of control of the seller and the agent."

Fallon Hewitt is a reporter at The Spectator. fhewitt@thespec.com