December 2019 Market Insight Report: Residential
Below you will find the Market Insight Report for residential properties for November 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.
Likely the most significant result from November is the continued low inventory levels. At the end of November 2016, we saw freehold inventory at 216 units – at the end of November 2019, we saw 242. At the end of November two years previous to 2016 and the two years since inventory levels were between 50-90% higher. Remarkably, and notwithstanding these tight inventory levels, sale prices year to date are only up 4.7% as compared to the same period in 2018. A sign of things to come, however, are the November results, which had sale prices up 7.7% as compared to November 2018. Days on market tumbled to 27 in November as compared to November 2018 when it was taking 44 days on average to sell a property. During the month of November 2019, properties sold for 98.18% of the asking price. Sales were down in November but only slightly – 2.3%.
Inventory levels at the end of November were very similar to 2014/2015 but were 30% lower than inventory levels at the end of November 2017 and 2018. Year to date sale prices increased by 2.9% as compared to the same period in 2018 and sales were up 1.6%. November produced completely different results which can be attributed to the dwindling inventory levels. November sales increased by over 30% as compared to November 2018 and while prices increased only modestly by 1.7%, the lower inventory levels will almost certainly lead to bigger gains over the coming weeks/months. During the month of November properties sold for 97.21% of the asking price and in 31 days, on average.
Inventory levels at the end of November were at a 5 year low – 8% lower than November 2016. These incredibly low inventory levels will necessarily lead to price increases over the coming weeks. Year to date, the average price was up 6.8% and sales were up just over 10% as compared to the same period in 2018. November sale prices were up 6.6% and sales were up just over 15% when compared to November 2018. 109 properties sold for the asking price or more in November 2019 as compared to 63 in November 2018. Properties sold for 99.98% of the asking price and in 27 days on average in the month of November. Our Team listed a property in the Gibson community of Hamilton Centre – it attracted 17 offers and sold for 35.7% over the asking price.
Keeping with the inventory theme, the Greater Hamilton area inventory levels varied. Ancaster saw a fairly average number of properties for sale at the end of November, Dundas inventory was at a 6 year low, Flamborough at a consistent level as compared to the last 4 years, Glanbrook saw inventory levels at essentially the same level as November 2016, Stoney Creek saw considerably lower levels than the last two years and finally, Waterdown where we also saw 2016 levels (we refer to 2016 as the benchmark for the lowest level of inventories and the corresponding highest increases in sale prices in recent history). Year to date, Greater Hamilton saw a 17% increase in sales and a 3.7% increase in sale prices, as compared to the same period in 2018. The month of November saw a 28% increase in sales and a 5.2% increase in sale prices as compared to November 2018. Properties sold for 98.12% of the asking price and in 36 days, on average.
What Does All Of This Mean?
Inventory levels in most of our trading areas are back to 2016 levels. While we don’t anticipate the same frenzied market that we saw in 2016/2017, we believe that demand will remain strong, and unless supply increases significantly, prices will have nowhere to go but up. We strongly believe that if you are thinking about selling your home next year, you should consider listing as early as possible in the new year. We suspect that inventory levels will begin to rise as we get further into the spring market but in the meantime, low inventory levels necessarily translate into higher prices.
To view our Market Insight Report: Condominiums (Burlington), please click here