Analyst notes the factors contributing to market pressures
The latest statistics from the Cornerstone Association of Realtors reveal a continuing downturn in home sales across Hamilton, with June figures marking a decline compared to both previous months and the same period last year.
In June alone, Hamilton saw 835 home sales, a figure that falls below historical averages. The dip, per a Inthehammer.com report, was particularly pronounced in the semi-detached housing sector, which saw a significant 13% decrease year-over-year, largely attributed to stagnant growth in new property listings relative to other housing types.
According to Nicolas von Bredow, spokesperson for the Cornerstone Association of Realtors: “Higher interest rates and the rising cost-of-living have impacted the housing market.” Despite a recent reduction in rates by the Bank of Canada, mortgage costs remain elevated, prompting potential buyers to adopt a wait-and-see approach until further adjustments or market shifts occur.
Current market trend
New listings in June surged to 2,048 units, a rise from the previous year. This increase, coupled with moderating demand, has contributed to an expansion in housing inventory, resulting in supply levels nearing four months across all property categories. Notably, apartment condominiums saw the most substantial increase, nearing a seven-month supply level.
Inventory levels for June exhibited a notable increase of 54% compared to the previous year, significantly surpassing long-term trends. This surge in supply has alleviated some pricing pressures, translating to a year-over-year decline of over 2% in the unadjusted benchmark price, which now stands at $849,900.
The breakdown of benchmark prices for different housing types in June paints a varied picture: detached homes averaged $844,400 (down 3%), semi-detached homes at $754,500 (down 2%), row houses at $662,000 (down 1%), and apartments at $469,600 (down 3%).
While year-to-date sales have shown improvement in select regions like Flamborough and Dundas, overall market conditions have been challenging for Hamilton West and Hamilton Centre, which reported the largest declines in home sales. Hamilton Mountain and Stoney Creek retained the largest market shares at 27% and 17%, respectively, within the Hamilton region.
As the market navigates these challenges, stakeholders anticipate further adjustments that could influence housing affordability and market activity in the coming months.
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