However, the market's sales activity levels are trending towards the opposite direction
The average detached home in Hamilton, Ontario is now selling for $1.11 million, more than three times its price a mere 10 years ago (roughly $300,000), according to the region’s housing industry association.
The average sales price of this asset class grew by 17.7% annually in May, despite a 2.2% monthly decline. Single-detached inventory also grew from 1.3 months to 1.7 months, with the number of listings in this property type rising by 13.7% year over year, said the Realtors’ Association of Hamilton and Burlington.
“In May, detached properties had the largest increase in new listings month over month than any other property category across the RAHB market area,” said association president Lou Piriano.
“Apartment-style properties had the highest inventory levels in May in contrast to all other property types across the RAHB market area, with nearly two months of inventory available. Apartment-style properties continue to have the most affordable price point which is typically between $500,000 and $700,000.”
Read more: RBC: Canadian housing affordability at its worst in at least three decades
However, overall, sales activity was below typical May levels, which Piriano attributed to buyers remaining on the sidelines amid steady increases in mortgage interest rates.
“As increased inventory comes to the market, buyers have more selection, which may also lend to further negotiation power,” Piriano said.
The region saw 834 residential detached sales (down by 3.8% monthly and down by 32% annually) and 239 townhome transactions (up by 3% monthly and down by 30.5% annually) in May.
