January 2020 Market Insight Report: Residential
Below you will find the Market Insight Report for residential properties for December 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.
(Freehold – $300,000 to $3,000,000)
At the end of December, year to date, the average price of a freehold property was $891,566, up 4.8% from last year. There were 1736 sales in 2019, up 3.1% as compared to 2018. Days on market were down 9.4% from last year. All things considered, it was a strong year where we saw a fairly balanced market and average gains. The more fascinating result from 2019 is the inventory level that remained at the end of the year. The month of December saw 60 sales in total, down 7.7% as compared to December 2018 and sale prices increase by 10.1%. The average price for the month of December was $978,067 which was the highest average price ever achieved in Burlington. At the end of December there were 123 freehold properties available for sale in Burlington (under $3 million dollars). To put this into perspective, at the end of December 2016, there were 119 properties listed for sale. During the intervening years and the years prior, inventory levels were double these numbers. The interesting thing is, properties are still selling for under 98% of the listing price. What does all of this mean for our Burlington clients? If you are planning to list your home this year, list it early. As to listing price, trust the evidence. Better to list sharp. If the price is right you will either sell for your asking price or possibly attract multiple offers. If you list too high, it’s very difficult to recover in this type of market.
(Freehold – $500,000 to $4,000,000)
At the end of December, year to date, the average price of a freehold property was $1,222.476, up 3.4% year over year. There were 1748 sales in 2019, up 2.1% as compared to 2018. Days on market were up 4.8% from last year. Results were pretty much exactly what we predicted at the beginning of the year. Inventory levels at the end of December were pretty average for Oakville and represented approximately 2.5 months of inventory which suggests a balanced market. Results for the month of December were dramatically different from the rest of the year.
The average price jumped to $1,303,342 up 15.1%, sales were up by 15.9% and days on market dropped to 36, down by 23% as compared to December 2018. Properties sold for just over 97% of the asking price on average, which again suggests that sellers are being overly optimistic as a result of fairly tight market conditions. The key to successfully selling your home in the early spring market will be to look at the evidence and price your property sharply.
(Freehold – $150,000 to $1,000,000)
At the end of December, year to date, the average price of a freehold property was $477,404, up 7% from last year. There were 3892 sales in 2019, up 10.3% as compared to 2018. Days on market were down 9.1% from last year. Results were slightly better than expected but make complete sense. Inventory levels at the end of December were slightly lower than what we saw at the end of December 2016. At the end of December 2018, we saw 481 active listings – at the end of December 2019, we saw 251, which represents less than one month’s worth of inventory. In the month of December we saw average prices rise to $488,154 and sales increase 12.8% as compared to December 2018. Unlike our other trading areas, properties sold for just under 100% of the asking price with 82 sales selling for the asking price or more.
The strategy of holding off offers for a period of time is taking hold once again in Hamilton. It can be a very effective strategy or it can backfire. As is always the case, rely on the evidence and make sure your agent knows the market well. We have seen far too many situations where an agent that does not work in the area puts a price on a property, holds off offers and gets nothing. To make matters worse, they then increase the price to where it should have been in the first place. Rarely does this end well.
(Freehold – $200,000 to $1,500,000)
Year to date, Ancaster, Dundas and Flamborough all saw sale price increases of on average 1.5%. Sales were up in Ancaster by 19.2%, Dundas 25.3% and Flamborough by 13.2% as compared to 2018. Year to date Waterdown and Stoney Creek saw sale prices increase by about 5%. Sales were up in Waterdown by 4.7% and in Stoney Creek by over 15% as compared to 2018. Glanbrook saw the largest increase in sale prices in our trading area, at 8.6%. Sales increased a whopping 27.1% as compared to 2018. Inventory levels in Ancaster and Waterdown are fairly average as compared to the last 5 years, down slightly from 2018. Stoney Creek inventory at the end of December was down dramatically from 2018 but still at a level that would suggest balance in that market. Dundas inventory at the end of December was very similar to what we saw at the end of December 2016 with only 18 freehold properties for sale. Flamborough saw pretty average levels for the end of December and Glanbrook was down to 2016 levels. Properties in the Greater Hamilton area sold for 98.50% of the listing price, on average, during the month of December.
These communities, for the most part, can best be described as balanced markets but if inventory levels continue to decline, we may see an overheated market favouring sellers. This will likely be particularly pronounced in the $500,000-$650,000 price range
What Does This Mean?
For our Sellers: If you plan to sell in 2020, now is the time. Supply is low, demand is high – exactly the right conditions to optimize the value of your property. For our Buyers: Inventory levels will increase. As the spring market progresses you will see more and more options. Be prepared for competition – get your ducks in a row. Employ the services of a lender that can turn an approval around quickly. Be prepared to do a pre-inspection if an inspection is important to you and get out and see properties as soon as they hit the market. It’s going to be a fast one, so get your sneakers ready!
To view our Market Insight Report: Condominiums (Burlington), please click here