‘More balanced’ real estate market makes a return to the Hamilton area

Summer has made its long awaited return to Hamilton - and along with it, a more balanced" real estate market.

The Realtors Association of Hamilton-Burlington (RAHB) reported Tuesday that 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.

Month over month, detached property sales were down by more than 19 per cent, while both townhouses and apartment-style properties slipped by nearly 24 per cent.

In a press release, RAHB president Lou Piriano said much like May, sales activity last month fell below the five- and ten-year historical averages across all property types and sub-regions in the market area, which includes Haldimand County and Niagara North.

In June, mortgage rates increased by 0.5 per cent, and as a result, some potential buyers have likely delayed their purchase because they may be taking a wait and see' approach to the market or they can no longer qualify," said Piriano.

For the third month in a row, the average sale price also decreased across all property types in the region.

Compared to May, the average sale price for a detached home fell by five per cent to $1,054,851, townhouses dropped by five per cent to $775,511 and apartment-style homes fell off by nearly 13 per cent to $582,798.

Across the market, the overall average sale price for any residential property tumbled by five per cent to $946,026.

But as sales and prices have slumped, Piriano noted that supply levels have managed to reach numbers not seen in more than two years.

More than 2,540 homes hit the market in June, marking an increase of more than 27 per cent compared to the same time last year.

The increase in active listings signals a more balanced market where buyers have greater negotiation power and more options," he added.

Across the region, most homes are also sitting on the market for longer, according to the association. In Hamilton, detached properties lasted an average of 16.5 days in June, a jump from 12.8 days the same time last year.

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