A Bit of Relief from The Summer Heat for Home Buyers
Source: Realtors Association of Hamilton Burlington
August 3, 2017 (Hamilton, Ontario)
The REALTORS® Association of Hamilton-Burlington (RAHB) reported 2,013 new listings were processed through the RAHB Multiple Listing Service® (MLS®) System in July, which is 17.8 per cent higher than the same month last year, 9.2 per cent higher than the 10-year average and the most new listings in the month of July.
All property sales were 20.4 per cent lower than the same month last year, and 12.9 per cent lower than the 10-year average.
“Comparing our sales and listings to last year’s shows just how the market has shifted in recent months,” said RAHB CEO George O’Neill. “More homes on the market and fewer purchasers combine to give more balance to the market.”
Seasonally adjusted* sales of residential properties were 20.5 per cent lower than the same month last year, with the average sale price up 10.1 per cent for the month. Seasonally adjusted numbers of new listings were 22.1 per cent higher than July of 2016.
Overall residential sales of 1,125 units were 21.4 per cent lower than the same month last year. Residential freehold sales were 21.5 per cent lower than July of 2016 while sales in the condominium market were 20.9 per cent lower than the same month last year.
“The trend that started developing back in April and May seems to be continuing, at least in the short term,” noted O’Neill. “Where earlier in the year we were seeing list-to-sell ratios as high as 91 per cent – which indicates a deep seller’s market – on the residential side, we are now seeing a more moderate market, with a 60 per cent list-to-sell ratio. This is much closer to a balanced market.”
The median price of freehold properties increased by 11.7 per cent over the same month last year while the median price for condominium properties increased by 21 per cent compared to the same period.
The average price of freehold properties showed an increase of 9.2 per cent compared to July of last year; the average sale price in the condominium market increased by 20.5 per cent compared to the same period.
“Home prices, while higher than last year, have actually dropped from the early highs from March through May,” noted O’Neill. “The average sale price for residential properties has come down 3.3 per cent from last month and 12.2 per cent from the high in May, while the median price has decreased 11.2 per cent from the
high in April. These are certainly not the price drops experienced in other areas of the Greater Toronto-Hamilton area, but may still be an indication that the hot market is cooling – at least for now.”
The average number of days on market increased to 25 days from 24 days in the freehold market and decreased from 27 to 25 days in the condominium market, compared to July of last year. Compared to last month, average days on market rose from 18 days for freehold properties and 17 days for condominiums.