Record low levels of housing sales in the Bay Area even with sharp drop in prices

It’s turned back into a buyers market for homes in Hamilton and Burlington as higher interest rates and a rise in new listings hit the market. The real Estate Association of Hamilton and Burlington (RAHB) in its report on January 2023 sales says Inventory has increased across all price points, particularly the lower price ranges. The new year has shown an increase in sales of homes priced under $800,000 and supply options in that price range are better compared to last January. However, total home sales are down 26 per cent year over year.

Across the RAHB market area, home prices are 20 per cent lower than they were at the start of 2022. However, after ten months of consecutive declines, benchmark prices increased over December. The unadjusted benchmark price was $809,800, below the $1,012,700 reported in January 2022, but well above the $602,700 reported at the beginning of the pandemic in 2020. This could potentially reflect a stabilization in prices.

Hamilton

Hamilton has experienced the slowest start to the year since 2011, with only 349 sales. In addition, there was an increase in new listings supporting inventory growth in the market. While inventory levels are much higher than in the past two years, they are still low compared to pre pandemic levels. Market conditions remain relatively balanced for homes priced below $800,000, while higher priced properties are seeing a shift to buyer’s market As of January, the benchmark price in the Hamilton region was $754,100, 21 per cent below January 2022 prices but slightly higher than last month. It is too early to say if this trend will continue, but it could be pointing to a more stable price environment. Prices in the region are still above pre levels.

Burlington

January sales fell to the lowest levels since the late 1990’s. Unlike other areas, Burlington hasn’t seen a large gain in new listings which is preventing inventory levels from rising to prepandemic levels. While months of supply has risen over the low levels reported last year, they are still lower than levels reported in Haldimand County and Niagara North. The benchmark price in January was up over December, reaching $976,500. Current prices are nearly 21 per cent below last year’s highs. However, current prices are still higher than prepandemic prices.