June 2019 Market Insight Report: Residential
Below you will find the Market Insight Report for residential properties for May 2019 for Burlington, Oakville, Hamilton, and Greater Hamilton. If you have any questions about any of the information below please feel free to contact us at any time.
Year to date, Burlington sales are up by 5.6% and sale prices have risen .6% as compared to the same period last year. The more significant outcome is inventory levels. At the end of May, 2018, there were 498 freehold properties for sale – at the end of May 2019 there were 401, which represents a fairly dramatic 24% decrease. With well under 2 months worth of inventory, Burlington continues to be firmly in a seller’s market based on inventory levels alone. There will no doubt be sellers out there that are scratching their heads and saying, not so much for me. It is a very fickle marketplace right now. Buyers are choosing to not buy at all over buying something that doesn’t quite fit their needs. Money is tight and borrowers are being put through rigorous testing before they are being approved. Home equity lines are more difficult to obtain and buyers are just generally being very cautious. And so, notwithstanding inventory levels suggesting a strong seller’s market, the month of May saw very different results. Sale prices dropped as compared to the same month last year, by 1.2% and sales were down 5.8%. It wasn’t unusual to see properties sell in competition in May but prices remained flat. The month of May saw properties sell for on average, 98.50% of the asking price and in 25 days.
Year to date, Oakville sales were down 2.9% and sale prices were up slightly, by 2.5%. Inventory levels continued to be on the high side but the good news is, they are not growing in any significant way and compared to 2018, moderating. With approximately 3 months worth of inventory the Oakville market could be best be described as balanced at the end of May based on inventory levels alone. The month of May saw very positive results with sale prices increasing by 3.1% and sales up .5% as compared to May of 2018. Notwithstanding balanced market conditions we still saw 27 properties sell in competition (most of which were under a million dollars). Properties sold for 97.38% of the asking price and in 25 days on average.
Year to date, Hamilton saw a 6.2% increase in sale prices and a 9.4% increase in sales as compared to the same period in 2018. With just under 1.5 months of inventory at the end of May, the Hamilton market can be described as firmly in seller’s market territory, based on inventory levels. The month of May showed very strong results with sale prices increasing by 5.6% and sales increasing by 12.1% as compared to May 2018. Over 150 properties sold in competition, several for over 20% of the asking price. Properties sold for 100% of the asking price and in 22 days on average in the month of May. The average price for a freehold property in Hamilton is getting very close to $500,000.
Year to date, Dundas and Ancaster remain in the red in terms of price coupled with pretty flat sales as compared to the same period last year. Waterdown and Glanbrook both saw increases in sale prices of just over 7% but Waterdown sales were down 12% while Glanbrook sales were up 16%, year to date, as compared to 2018. Stoney Creek Mountain saw a 47% increase in sales with a 3.3% increase in sale prices and Stoney Creek below the escarpment and Flamborough saw fairly flat numbers in terms of sale prices along with significant increases in sales in Flamborough, just over 17% and a 4.1% increase in sales in Stoney Creek below the escarpment. Overall for the month of May, the Greater Hamilton area saw an increase in sale prices of 5.3% and a whopping 48.6% increase in sales as compared to May 2018. Properties sold on average for 98.74% of the asking price and in 28 days during the month of May. Inventory levels suggest that Dundas, Waterdown and Glanbrook are all best described as seller’s market while Ancaster, Stoney Creek and Flamborough are best described as balanced based on inventory levels.
What does all of this mean?
These results are somewhat conflicting. Increased sales, decreased inventories but not the corresponding increase in sale prices one would expect with these conditions. Clearly, the measures implemented by the Federal government to cool the market have worked. We have cautious buyers, tight money sources, more realistic sellers and, notwithstanding some lower inventory levels, a generally well-balanced marketplace. With these lower inventory levels, we can say with certainty that it is a good time to sell but that finding the right listing price will be a tricky business and should be handled only by a seasoned professional.
To view our Market Insight Report: Condominiums (Burlington), please click here